Investors with a short-term horizon can buy the stock of Geometric at current levels. The stock’s medium-term downtrend from its 52-week high of ₹174 marked in late September 2014 found support at around ₹120 in December. The significant long-term support around ₹120 also coincides with the 50 per cent Fibonacci retracement level of the stock’s prior uptrend. Taking support at this level, the stock resumed its long-term uptrend in early February. On February 19, the stock decisively breached its 200-day moving average and a key long-term resistance at ₹135.

It hovers well above its 50- and 200-day moving averages. Volumes are increasing over the past five trading sessions too. The indicators on the daily chart feature in the bullish zone, backing the stock’s progressing uptrend. It can extend the rally and reach our price target of ₹147.5 and ₹150.5 in the upcoming sessions. Buy the stock with a stop-loss at ₹138.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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