Trading call: Escorts can move higher if momentum sustains (₹ 622)

Akhil Nallamuthu | Updated on September 23, 2019

BL Research Bureau

The stock price of Escorts is on the rise, and it is currently trading at 4-month high gaining nearly 10 per cent in today’s session. Since Friday the stock is up by 20 per cent and is currently trading at ₹620 levels.

Friday’s closing price confirms that the stock went past 100-day moving average denoting a potential reversal in the long-term trend. The Relative Strength Index is nearing the over-bought levels, but it seems to have some more room left on the upside. The MACD indicator is pointing upwards, suggesting a strong uptrend. However, the stock faces resistance at ₹630 levels in the form of 50 per cent Fibonacci retracement level of the previous downswing.

Hence, if the bullish momentum sustains and help the stock breach ₹630, it has ample space left on the upside with potential targets for the medium term at ₹672 levels – 61.8 per cent Fibonacci retracement level – and ₹700.

Published on September 23, 2019

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