Technical Analysis

Great Eastern Shipping Company (₹222.3): Buy

Yoganand D BL Research Bureau | Updated on April 22, 2020

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The stock of Great Eastern Shipping Company jumped 8 per cent with above average on Wednesday, breaching a key resistance at around ₹205. This rally provides investors with a short-term perspective an opportunity to buy the stock at current levels.

Following a medium-term downtrend from the January high of ₹369, the stock recorded a 52-week low at ₹168 in late March and found support thereon. Subsequently, the stock changed direction triggered by positive divergence on the daily RSI and price rate of change indicator. After moving sideways with an upward bias at around ₹200, the stock had recently breached its 21-DMA. Further, the breakthrough of the immediate resistance at ₹205 has strengthened the near-term bullish momentum.

There has been an increase in daily volume over the past three trading sessions. The daily RSI is charting higher in the neutral region towards the bullish zone and the weekly RSI has entered the neutral region from the bearish zone.

Taking a contrarian stance, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹232 and ₹236 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹217 levels.

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

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Published on April 22, 2020
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