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Like the broader market, the stock of Hero Motocorp Limited swiftly reversed the trend towards upside after a huge fall during February-March of this year. The stock bottomed out at ₹1,475 in late March from where it began to gain at a quick pace. The price has been making higher peaks since then and consequently, the stock registered is fresh 52-week high of ₹3,181.3 on Wednesday i.e. it has more than doubled from its March low. The bulls do appear to have more steam and so the rally can be expected to continue.
Along with the price pattern of higher highs-higher lows, the daily relative strength index is showing good strength in the upside momentum. Also, the moving average convergence divergence indicator in the daily chart is in an upward trajectory. Since the trend is bullish, the price moderation on Thursday could only be a minor correction and the stock is most likely to move north from here. So, traders can buy with stop-loss at ₹3,060. Potential near-term targets can be ₹3,265 and ₹3,300.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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