The stock of Fineotex Chemical (FCL) surpassed a near-term resistance at ₹109 by gaining 5.8 per cent accompanied by good volume on Wednesday. It was testing this resistance over last two weeks. The recent breakthrough of the barrier has strengthened the uptrend and provides investors with a short-term perspective an opportunity to buy the stock at current levels.
The stock is in an uptrend across all time frames. Following a correction, the stock took support at around ₹56.6 in late March this year and resumed the uptrend. Since then, the stock has been in a medium-term uptrend. Backing the uptrend, there has been an increase in volume since early July.
The daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest. The daily and the weekly relative strength index hover in the bullish zone, cushioning the uptrend.
The short-term forecast is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹118 and ₹121 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹111.
(Note: The recommendations are based on technical analysis. There is 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.