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We recommend a buy in the stock of Autoline Industries from a short-term perspective. It is evident from the charts of the stock that after registering a 52-week low at Rs 60 on March 28, the stock reversed direction. This reversal was triggered by positive divergence in daily relative strength index and moving average convergence divergence indicator. Since then, the stock has been on a short-term uptrend.
On Monday, it advanced 8 per cent with good volume, conclusively breaking through its immediate resistance around Rs 77 and its 21-day moving average. The daily RSI is moving higher in the neutral region towards the bullish zone. The weekly indicators are recovering from the oversold levels. The daily price rate of change indicator is featuring in the positive territory implying buying interest.
We are bullish on the stock from a short-term perspective. We anticipate its rally to continue and reach our price target of Rs 83.5 or Rs 85 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 78.5 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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