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The stock of Liberty Shoes surged 6 per cent accompanied by extraordinary volume on Monday, decisively breaking above a key resistance at around ₹137 on Monday. This rally has strengthened the medium-term uptrend of the stock that has been in place since recording a 52-week low at ₹78 in late August this year. Investors with a short-term horizon can buy the stock at current levels.
In early November, the stock surpassed a vital medium-term resistance at ₹125 and subsequently moved sideways in the band between ₹125 and ₹137. The recent upward breakout of this band reinforces both short- as well as medium-term uptrend. The stock hovers well above the 50- and 200-day moving averages. There has been an increase in daily volume over the past two trading sessions.
The daily relative strength index has entered the bullish zone from the neutral region and similarly the weekly RSI has entered the bullish zone. Further, the daily and the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
Overall, the short-term outlook is bullish. Targets are ₹148 and ₹151. Traders can buy with a stop-loss at ₹139.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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