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Investors with a short-term horizon can consider buying the stock of Essel Propack, a small-cap stock at current levels. The stock has been on a long-term uptrend from the March 2013 trough at ₹30. The medium- and short-term trends are also up for the stock. It formed a symmetrical triangle pattern between July and August this year and conclusively broke out of this pattern by surging 8.5 per cent on Wednesday. Generally, symmetrical patterns are continuation patterns which follow the primary trend of the stock. Moreover, it has conclusively breached the 21- and 50-day moving averages and is hovering well above them. There is an increase in daily volumes in the past two sessions. The indicators on the daily chart have entered the bullish zone from the neutral region. The short-term outlook is bullish now. The stock can extend its rally and reach the price targets of ₹119.5 and ₹122 levels. Buy the stock with a stop-loss at ₹112 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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