IDBI Bank is gaining momentum. Investors can consider buying this stock for pocketing short-term gains. It recorded a strong break above an ascending triangle pattern on Wednesday, accompanied by good volumes. This pattern was formed from the early September low of Rs 52 and the horizontal line is placed at Rs 65. Generally, ascending triangle patterns are bullish continuation patterns, but in this case, it acts as a bullish reversal pattern. The stock conclusively breached its 21- and 50-day moving averages in early October and has been trading well above them.
There is an increase in daily volume in the past four trading sessions, backing the break out. Indicators on the daily chart are comfortably placed on the bullish zone, reinforcing the stock’s uptrend. Indicators on the weekly chart are out of bearish zone and trending higher. Since the stock has decisively broken out of the ascending triangle pattern, and the short-term uptrend line is intact, its short-term outlook is bullish. The stock can extend its uptrend to the price target of Rs 70.7 or Rs 72 in the upcoming trading sessions. Buy the stock with a stop-loss at Rs 66.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)