Comments
The stock of Carborundum Universal, which has been on a rally since the beginning of the year, entered a consolidation phase in September. It had been oscillating between ₹820 and ₹930 till Tuesday. On Wednesday, the stock broke out of the range increasing the probability of it establishing the next leg of an uptrend.
The price pattern since June – the rally followed by consolidation and then a breakout – is a bullish implication. Indicators like the RSI and the MACD on the daily chart are showing a fresh uptick. Moreover, the breakout has occurred with considerable volume and the price has bounced off the 21-day moving average. On the upside, the stock has the potential to move past the psychological level of ₹1,000 and touch ₹1,085 in the near-term. But the stock might retest the resistance-turned-support of ₹930. Given the prevailing condition, traders can buy the stock at the current level of ₹981 and accumulate at ₹930. Place initial stop-loss at ₹890. When the stock rallies above ₹1,035, revise the stop-loss to ₹980. Exit the longs at ₹1,085.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
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.