Jyothy Laboratories is testing an important hurdle at ₹208 and is poised for a breakout. Traders with a short-term perspectivecan buy the stock at current levels. The long-term trend has been up for the stock from its late 2011 low of ₹62. Since taking support at ₹143 in September 2013, the stock has been on a medium-term uptrend, shaping higher peaks and troughs. This uptrend line is intact. Moreover, the stock is trading well above its 50- and 200-day moving averages.
On Thursday, the stock rose 3 per cent reinforcing the uptrend. The stock has gained almost 6 per cent so far this week. Volumes have been increasing in the past three trading sessions. The relative strength index on the daily chart has entered the bullish zone from the neutral region. The weekly RSI is featuring in the bullish zone supporting the medium-term uptrend. Similarly, price rate of change indicators are featuring in the positive area signalling buying interest. The stock has potential to break the resistance and reach the price target of ₹215 and ₹219 in the forthcoming sessions. Buy the stock with a stop-loss at ₹202.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.