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Investors with short-term perspective can consider buying the stock of BGR Energy Systems. It is seen from the charts of the stock that following a medium-term downtrend from its April high around Rs 369, it found support near Rs 250 in late August. This support level coincides with the 61.8 per cent fibonacci retracement level of the stock's prior up move. The stock started to move higher from Rs 250 and has been on a nascent short-term uptrend. While trending higher it breached its 21- and 50-day moving averages during mid-September.
On Thursday, the stock zoomed 4.7 per cent, decisively breaking through its immediate resistance as well as 200-day moving average around Rs 285. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region. The daily moving average convergence divergence indicator is moving higher in line with the stock price and is featuring in the positive territory implying upward momentum. Both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.
Our short-term forecast on the stock is bullish. We anticipate its rally to continue and reach our price target of Rs 305 or Rs 311 in the days ahead. Traders with short-term perspective can buy the stock with stop-loss at Rs 287 levels.
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