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Consumer durables maker Whirlpool of India offers a good trading opportunity at the current price point. After an intermediate-term downtrend, the stock found support at Rs 150 in August. Thereafter, it etched a sideways consolidation in the band of Rs 150 to Rs 180 for almost four months.
On Wednesday, the stock broke through the ceiling of this range gaining 5.4 per cent. The breakout was accompanied by strong volumes, further reinforcing the strength in the short term. The level of Rs 180 that was a long-term resistance, has now turned into a key support level. Indicators on the daily chart continue to feature in the bullish zone backing the stock’s ongoing uptrend. Those on the weekly chart are hovering in the neutral region with a positive bias.
Since the momentum indicators show a positive bias, one could buy the stock while maintaining a stop-loss at Rs 184.5. The stock can extend its rally to Rs 196 or Rs 200 in the ensuing trading sessions.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading .)
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