Investors with a medium-term horizon can buy the stock of Alembic Pharmaceuticals at current levels. The stock took support after recording a 52-week low at ₹25 in late March, following a medium-term downtrend from the key resistance level of ₹64.
Since late March, the stock has been in a medium-term uptrend. While trending up, it breached a key resistance at ₹47 and the 200-day moving average at the same level in late April.
Subsequently, this level turned into a key support and cushioned the stock in the past week.
On Friday, the stock jumped 9.2 per cent accompanied by extraordinary volume, and managed to close above a key resistance level of ₹51. This rally has strengthened the medium-term uptrend. Also, the stock is now trading well above its 50- and 200-day moving averages.
The daily relative strength index (RSI) has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region.
Both the daily and the weekly price rate of change indicators have entered the positive terrain from the negative terrain, implying buying interest.
The medium-term uptrend is intact and the outlook is bullish for Alembic.
It can continue to trend upwards and reach the price targets of ₹60 and ₹63 in the coming weeks.
Traders can buy the stock with a stop-loss at ₹47.
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