Technical Analysis

Den Networks (₹81.4): Buy

Yoganand D BL Research Bureau | Updated on August 22, 2019

Investors with a short-term perspective can buy the stock of Den Networks at current levels. The small-cap stock zoomed 16.7 per cent accompanied by above average volume decisively breaching a key long-term resistance at ₹75 on Wednesday.

Since finding support at ₹45.5 in early June this year, the stock has been in a medium-term uptrend. Also, the short-term trend is up. The stock recently breached its 200-day moving average poised at ₹65 and continued to trend upwards. It hovers well above the 50- and 200-DMAs.

The daily relative strength index features in the bullish zone and the weekly RSI has entered the bullish zone from the neutral region. Further, the daily as well as weekly price rate of change indicator hovers in the positive territory implying buying interest.

Overall, the short-term outlook is bullish. With a minor pause at current levels, the stock has potential to trend upwards and reach the price targets of ₹85 and ₹87 in the ensuing trading sessions. Traders with a short-term view can buy with a stop-loss placed at ₹79.

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

Published on August 22, 2019

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