Dabur India breached a key resistance at ₹185 recently and has formed a flag pattern on the daily candlestick chart. This gives traders an opportunity to buy the stock at current levels. Since taking support at ₹145 in August 2013, the stock has been on an intermediate-term uptrend. The medium- and short-term trends are up for it.
After taking support at ₹177 last month, the stock continued to trend higher. It is hovering well above its 50- and 200-day moving averages. There has been an increase in daily volumes over the past seven trading sessions. On Tuesday, the stock decisively breached its immediate key resistance at ₹185. It is pausing well above this level forming a flag pattern which is a continuation pattern. Indicators on the weekly chart are hovering in the bullish zone implying upward momentum. Our short-term outlook on the stock is bullish. It can extend its upmove and reach the price target of ₹195.5 and ₹200 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹183.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)