Technical Analysis

Emami Paper Mills (₹223.5): Buy

Yoganand D | Updated on June 06, 2018 Published on June 06, 2018

Investors with a short-term horizon can buy the stock of Emami Paper Mills at current levels. After taking support at ₹200 recently, the stock has gained 8.4 per cent with good volume on Wednesday. With this rally, the stock has formed a bullish engulfing candlestick pattern which is a bullish reversal pattern.

Following a corrective decline from the key resistance level of ₹250, the stock had found support at ₹200 and halted the corrective decline. The stock appears to have resumed its uptrend that has been in place from early February low of ₹150. Moreover, the long-term uptrend that has been in place since May 2017, also remains intact.

The daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI feature in the neutral region. As the stock reverses higher from a key support level backed with a bullish engulfing candlestick pattern, the near-term outlook is positive for the stock. It can extend its up move and reach the price targets of ₹233 and ₹237 in the coming trading sessions. Traders with a short-term view can buy with a stop-loss at ₹218.5.

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

Published on June 06, 2018
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