Investors with a short-term horizon can buy the stock of Elecon Engineering Company at current levels. On Wednesday, the stock jumped 5 per cent accompanied with an above average volume, reinforcing the short-term uptrend. Since taking support at around ₹50 in October 2018, the stock has been in a medium-term uptrend. The short-term trend is also up.
In early March, the stock conclusively breached a key resistance at ₹62 as well as its 50- and 200-day moving averages. After a minor corrective decline, the stock found support at ₹62 recently and reversed higher. It currently trades well above the 50- and 200-day moving averages.
The daily relative strength index has just entered the bullish zone from the neutral region backing the upmove. The weekly RSI features in the neutral region. The short-term outlook is bullish for the stock. It has potential to extend the rally and reach the price targets of ₹69 and ₹70 in the ensuing trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹64.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.