The stock of Tinplate Company of India gained 5 per cent accompanied by above average volume on Wednesday, managing to close above the key resistance level of ₹120. Investors with a short-term perspective can buy the stock at current levels. After a medium-term downtrend, the stock recorded a 52-week low at ₹87.4 in late August this year and reversed direction. Since then, the stock has been a nascent uptrend.

While trending up, it had breached the 21- and 50-day moving averages in early September. The stock trades well above these moving averages. There has been an increase in daily volume over the past two weeks. After testing the key resistance at ₹120 for a few trading sessions, the stock appears to have managed to close above it on a strong note recently.

The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region. Buying interest is witnessed as there is an increase in volume in the recent times and the daily price rate of change indicator features in the positive terrain.

Short-term forecast is bullish. The stock can continue to trend upwards and touch the price targets of ₹128.5 and ₹131.5 in the forthcoming trading session. Buy the stock with a stop-loss at ₹120.5.

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

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