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Investors with a short-term horizon can buy the stock of Adlabs Entertainment at current levels. It is evident from the charts of the stock that it found support at around ₹135 during late April and early May after a short-term downtrend from the peak of ₹207. Subsequently, the stock changed direction and started to trend northwards, triggered by positive divergence in the daily relative strength index and price rate of change indicator. The stock decisively breached its 21-day moving average recently and is holding well above it.
After forming a flag pattern, the stock broke out of this pattern and reached its pattern price target by jumping 7 per cent with above average volume on Wednesday. It also breached the immediate resistance at around 162. The outlook is bullish and the stock has the potential to extend its current uptrend and reach the price target of ₹185 and ₹188.5 in the ensuing sessions. Buy the stock with a stop-loss at ₹174.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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