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We recommend a buy in the stock of JBF Industries for a short-term horizon. It is apparent from the charts of the stock that ever since bottoming out from its January low at Rs 89, the stock has been on an intermediate-term uptrend. In late June, the stock emphatically broke out of significant resistance at Rs 120 and continued its rally upwards. The stock took twin support around Rs 134, a medium-term uptrendline and a key support, and resumed its uptrend in the week before.
On Thursday, the stock jumped almost five per cent, moving above significant resistance at Rs 140. We see that there is an increase in volumes over the past two days. The stock is trading well above its 50- and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is hovering in this zone.
The daily moving average convergence divergence indicator has signalled a buy. Both daily and weekly MACD are featuring in the positive territory. Our short-term outlook on the stock is bullish. We anticipate its upward momentum to continue and reach our price target of Rs 152 or Rs 156.5 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 143.
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