The stock of Voltas gained almost 4 per cent with above-average volume breaking out of a key resistance level at around ₹350 on Tuesday. This provides a good buying opportunity for short-term traders.
Since taking support at around ₹220 in February 2016, the stock has been on a long-term uptrend. After retracing 61.8 per cent of the Fibonacci retracement of the prior uptrend, the stock found support at ₹290 levels last November. It then reversed direction and has been on a medium-term uptrend. The recent breakout of ₹350 levels has strengthened this uptrend. The stock is trading well above its 50- and 200-DMAs. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering this zone. The short-term outlook is bullish. It can prolong its uptrend and reach the price targets of ₹377 and ₹385 in the ensuing trading sessions. Buy the stock with stop-loss at ₹355.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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