Investors with a short-term perspective can buy the stock of TRF at current levels. The stock has been in limelight this week and it has skyrocketed 22.8 per cent.
After registering a 52-week low of ₹94 in late February , the stock changed direction triggered by a positive divergence in the daily relative strength index and price rate of change. Moreover, the weekly RSI and price rate of change indicators are also displaying positive divergence backing the stock’s trend reversal.
While trending up, the stock has conclusively breached its 21- and 50-DMAs and trades well above them. There has been an increase in daily volume over the past three trading sessions.
Reinforcing the bullish momentum, the stock jumped 8 per cent on Thursday, decisively breaking above a key resistance at ₹120. The daily RSI hovers in the bullish zone. Further, the daily and weekly price rate of change indicators are featuring 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 ₹134 and ₹136.5. Traders can buy with a stop-loss at ₹126.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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