The stock of PG Electroplast gained 8.8 per cent with good volume on Monday. This rally has helped the stock to breach its key immediate resistance at ₹109 which is also the 200-day moving average level. Traders with a short-term perspective can buy the stock at current levels. Following an intermediate-term downtrend, the stock found support marking a 52-week low at ₹53.6 in early January. Since then, the stock has been in a short-term uptrend.
The conclusive breakthrough of the key resistance around ₹109 has strengthened the ongoing uptrend. The daily relative strength index is featuring in the bullish zone and weekly RSI is on the brink of entering this zone from the neutral region. The short-term uptrend is intact and theoutlook for the stock is bullish. It can extend its rally and hit our price target of ₹120 and ₹122.5 in the upcoming sessions. Buy the stock with a stop-loss at ₹112.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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