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Investors with a short-term view can buy the stock of Apollo Micro Systems at current levels.
The stock recorded a 52-week low at ₹69.9 last week and found support after a medium-term downtrend from the key resistance level of ₹150 encountered in late May 2019. Triggered by prolonged positive divergence in the daily relative strength index and price rate of change indicator, the stock changed direction and surged sharply on Friday.
This rally has breached an immediate resistance as well as the 21-day moving average at ₹80. Extending the rally, the stock jumped 10.9 per cent on Monday. It has further room to extend the upmove.
There has been an increase in daily volumes over the past two trading sessions. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI has moved into the neutral region from the bearish zone.
Also, the daily price rate of change indicator hovers in the positive terrain, implying buying interest. The near-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹98 and ₹100 in the coming trading sessions. Traders can buy the stock with stop-loss at ₹92.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading
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