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We recommend a buy in the stock of Aegis Logistics from a short-term perspective. It is apparent from the charts of the stock that its medium-term downtrend that started from the peak of Rs 210 in early December 2012, appears to have ended taking support at Rs 123 in the previous week. The zone between Rs 120 and Rs 125 is a significant support zone for the stock. It subsequently changed direction triggered by positive divergence in daily relative strength index and is trending northwards.
On Tuesday, the stock jumped 11 per cent breaking out of a flag pattern and breaching key resistance around Rs 150 with extraordinary volume. The daily RSI is on the verge of entering the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region. The daily moving average convergence divergence indicator has signalled a buy.
The daily price rate of change indicator has entered the positive terrain indicating buying interest. Our short-term forecast on the stock is bullish. We anticipate its rally to continue and reach our price target of Rs 162.5 or Rs 166 in the ensuing sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 153 level.
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