Investors with a short-term perspective can consider buying the stock of Berger Paints. It is
Investors with a short-term perspective can consider buying the stock of Berger Paints. It is evident from the charts of the stock that since taking base from a key support level at Rs 78 in December 2011, the stock has been on a medium-term uptrend. Its long-term trend has been up since 2008. The stock is hovering way above its 50- and 200-day moving averages.
Following a short-term sideways movement around Rs 120, the stock appears to have resumed its medium-term uptrend. On Wednesday, the stock gained 4.2 per cent accompanied by above average volumes. The daily relative strength index has re-entered in the bullish zone from the neutral region and weekly RSI is featuring in this zone. Both the daily as well as weekly moving average convergence divergence indicators are featuring in the positive terrain indicating upward momentum.
Considering that the stock's medium-term uptrend-line is intact, and other indicators are showing signs of strength, we are bullish on the stock. We expect its up move to carry on and reach our price target of Rs 126 or Rs 130 in the approaching trading sessions. Traders with short-term horizon can buy with stop-loss at Rs 119.