Technical Analysis

Chart Focus: Trident (₹71): Buy

Yoganand D | Updated on January 13, 2019 Published on January 13, 2019

Investors with a medium-term horizon can buy the stock of Trident at the current price level. Following a medium-term downtrend from the new high of ₹109 recorded in September 2017, the stock found support at ₹51 in May 2018. It subsequently changed direction and began to trend up. It took support in the ₹51-55 band in July and September 2018 and bounced up. Short-term trend is also up for the stock.

Last week, the stock gained 6.5 per cent with good volume, breaching a key resistance at 67. There has been an increase in daily volume over the past two weeks. While trending up, the stock decisively breached its 50- and 200-day moving averages in December and trades well above these averages. The daily relative strength index features in the bullish zone supporting the on-going bullish momentum.

The weekly RSI is on the brink of entering the bullish zone from the neutral region. Moreover, the daily as well as weekly price rate of change indicators hover in the positive territory, implying buying interest. The medium-term outlook is bullish for Trident. The stock can extend its uptrend and hit the price targets of ₹80 and ₹84 over the medium term with a small pause at ₹77 in the ensuing weeks. Investors with a medium-term perspective can buy the stock with a stop-loss at ₹65 levels.

(This recommendation is based on technical analysis. There is a risk of loss in trading)

Published on January 13, 2019
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