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Investors with short-term perspective can consider buying the stock of V-Guard Industries. It is apparent from the charts of the stock that it took support at its long-term base level around Rs 140 in December 2011 and changed direction. Since then, the stock has been on an intermediate-term uptrend. While trending higher, the stock took support around Rs 180 in late March this year.
The stock again took support at Rs 180 last week and continued its uptrend. On Wednesday, the stock conclusively broke through a key resistance at Rs 200 by gaining five per cent. This rally has also decisively breached its 50- and 200-day moving averages and is hovering well above them. We observe that there is an increase in daily volumes over the past four sessions. Both daily and weekly relative strength index are featuring in the bullish zone.
The daily moving average convergence divergence indicator has signalled a buy and has entered in to the positive territory. Our short-term outlook on the stock is bullish. We anticipate its up move to prolong and reach our price target of Rs 210 or Rs 216 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 197.
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