IFB Industries has seen a minor correction in the last two days. Investors can make use of this to buy the stock. The stock has been in a medium-term uptrend since hitting a low of Rs 38.4 in August this year. While trending upwards, the stock has conclusively surpassed its short to medium-term moving averages. It also broke out of the key resistance levels at Rs 60 and Rs 65 on November 3 with a spurt in volumes. The recent price correction resembles a flag pattern on the daily candlestick chart. This is a continuation pattern implying the rally has one more leg upward. As the stock is halting at an important support level, resumption of the uptrend is possible in the near term. The indicators on the daily charts continue to feature in the bullish zone backing the stock’s uptrend. The price rate of change indicator is hovering in the positive area implying buying interest. A decisive rebound from the current support at around Rs 65 can push the stock higher to the price target of Rs 68 or Rs 70 in the short term. Investors with a short-term horizon can buy the stock with a stop-loss at Rs 63.5.

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

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