We recommend a buy in the stock of > Claris Lifesciences from a short-term perspective. It is apparent from its charts that since peaking out from December 2012 high of Rs 292, the stock has been on a medium-term downtend. While trending down, the stock has formed a falling wedge pattern, a bullish reversal pattern. In February, the stock took base at its long-term key support at Rs 185 and started trending higher. This reversal is triggered by positive divergence in the daily moving average convergence divergence indicator. On Friday, the stock gained almost 5 per cent accompanied by above average volume, breaking out of the falling wedge pattern. Both daily and weekly relative strength indices are moving towards the bullish zone. The daily MACD has signalled buy and is moving higher in line with the stock price. Moreover, daily price rate of change indicator is featuring in the positive area implying buying interest. We expect its up-move to continue and reach our price target of Rs 208 or Rs 212 in the approaching trading sessions. Traders with short-term horizon can consider buying the stock with stop-loss at Rs 195.
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.