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Investors with a short-term perspective can buy the stock of Power Finance Corporation (PFC) at current levels. The stock gained almost 6 per cent accompanied by above average volume on Wednesday, breaking above a vital resistance at ₹119.5. It has jumped 11.7 per cent so far this week. Moreover, this rally has decisively breached the moving average compression (21-, 50- and 200-DMAs) at around ₹116.
With the recent resistance breakthrough, the stock appears to have resumed its medium-term uptrend that has been in place since the October low of ₹90.5. The short-term trend is also up. There has been an increase in volume over the past three weeks.
The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI chart higher in the neutral region. Further, the daily and the weekly price rate of change indicators are featuring in the positive territory implying buying interest.
The short-term outlook is bullish for the stock. It can extend the ongoing rally and reach the price targets of ₹128 and ₹131 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹119.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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