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Investors with a short-term perspective can buy VIP Industries at current levels. On Monday, the stock made a strong breakout of its ascending triangle pattern by gaining 7.6 per cent with good volumes. The stock has been on a medium-term uptrend since reversing upwards from its August low of Rs 38.8. But this trend encountered resistance at Rs 61 and began moving sideways forming an ascending triangle pattern.
An upward breakout of this pattern is bullish from both short- as well as medium-term perspective. Volumes have been increasing over the past four trading sessions. Further, the stock is hovering well above its 50- and 200-day moving averages. With this recent rally, the indicators on the daily chart have progressed into positive territory implying upward momentum.
The weekly indicator is on the brink of entering the bullish zone from the neutral region. The medium-term uptrend line is intact. The short-term forecast for the stock is bullish. Buy the stock while maintaining a stop-loss at Rs 62.8. Targets are Rs 67 and then Rs 68.5.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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