Technical Analysis

Century Plyboards India (₹154.9): Buy

Yoganand D BL Research Bureau | Updated on September 26, 2019 Published on September 26, 2019

The stock of Century Plyboards India gained 3.4 per cent breaking above a key immediate resistance at ₹150. This rally has strengthened the short-term uptrend. Investors with a short-term perspective can buy the stock at current levels.

After a medium-term downtrend, the stock found support at ₹112 in early August this year. Thereafter, it changed direction triggered by positive divergence in the daily relative strength index and price rate of change indicators. Since then, the stock has been in a short-term uptrend. While trending up the stock had decisively breached its 21- and 50-DMAs and hovers well above them.

Following a near-term corrective decline, the stock took support at ₹132 and resumed the uptrend. The daily relative strength index features in the bullish zone and the weekly RSI hovers in the neutral region. Also the daily price rate of change indicator features in the positive territory implying buying interest. There has been an increase in daily volume over the past four trading sessions.

Outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹161.5 and ₹165 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹151.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on September 26, 2019
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