Technical Analysis

Talbros Automotive Components (₹113.8): Buy

Yoganand D BL Research Bureau | Updated on June 30, 2020 Published on June 30, 2020

Investors with a short-term perspective can buy the stock of Talbros Automotive Components at current levels. The stock has been in a medium-term uptrend since recording a 52-week low at ₹62 in late March this year.

In early June, the stock had decisively breached a key resistance at ₹97 and continued to trend upwards. Since then, it has been in a short-term uptrend. On Tuesday, the stock had emphatically breached a key resistance at ₹110 and the 200-day moving average which it was testing over the past one week. It had jumped 13.6 per cent on that session with extra-ordinary volume. This rally has strengthened the medium-term uptrend. There has been an increase in daily volume over the past one month.

The daily RSI has re-entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Besides, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest. Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹118.5 and ₹122 in the ensuing trading sessions. Traders with a short-term view can buy the stock with a stop-loss at 110.5 levels.

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

Published on June 30, 2020
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