The stock of Hathway Cable & Datacom jumped over 5 per cent accompanied by good volume, breaking through a key resistance at ₹31.7. This upmove has also breached its 200-day moving average. The stock’s long-term downtrend ended in September, after finding support in the ₹24-25 band.
It then changed direction, triggered by positive divergence in the daily moving average convergence divergence and price rate of change indicators. Since then, the stock has been on a medium-term uptrend. However, it encountered key resistance at around ₹31.7 in early October and moved sideways with positive bias. The stock trades well above its 21- and 50-day moving averages. The daily RSI is featuring in the bullish zone and the weekly RSI is likely to enter this zone. Both the daily and weekly price rate of change indicators are hovering in the positive territory. The short-term outlook is positive for the stock. It can extend its uptrend to ₹36-37. Traders with high risk appetite can buy it with a stop-loss at ₹32.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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Published on November 23, 2016
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