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The stock of Thomas Cook (India) moved out of a symmetrical triangle pattern by travelling 4 per cent northwards on Thursday. This move gives buying opportunity for investors with a short-term perspective. After forming a strong base at ₹50, the stock began to trend upwards in August 2013. Since then, the stock has been on a long-term uptrend forming higher peaks and troughs. Medium-term trend is also up for the stock. However, the stock encountered resistance at ₹129 in early June and started to move sideways forming a symmetrical triangle pattern which is a continuation pattern. Its recent rally has reinforced bullish momentum.
The stock is trading well above its 21- and 50-day moving averages.
Indicators on the weekly chart are featuring in the positive territory implying upward momentum. Our short-term outlook on the stock is bullish. It can extend its uptrend and knock the price target of ₹130 and then ₹133 in the coming trading session. Buy with a stop-loss at ₹121.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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