Future Retail surged 7 per cent with a spurt in volume on Tuesday. The stock breached its immediate resistance as well as 50-day moving average in that session. It recently found support at Rs 63.3 and started to move upwards. It has been consolidating sideways in a wide range between Rs 63.3 and Rs 90 since late July. Within this range, the stock is climbing upwards from the lower boundary. This upward reversal is backed by a positive divergence in the weekly indicators.
There has been an increase in daily volume over the past seven trading sessions. The relative strength index on the daily chart has entered the bullish zone from the neutral region indicating upward momentum. Both daily and weekly price rate of change indicators are featuring in the positive territory signalling buying interest. The short-term outlook is bullish for the stock. Traders with a short-term perspective can buy the stock with a stop-loss at Rs 75.8 level. Short-term targets are Rs 81 and Rs 83.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)