ABG Shipyard – Medium Term Buy Recommendation
Investors with medium-term perspective can consider buying the stock of ABG Shipyard (Rs 388.4), a private sector ship building company. The stock has been trending higher forming higher peaks and higher troughs since bottoming out in February 2009 at Rs 62.
However, the stock encountered resistance at around Rs 490 in November 2010 and was on a medium-term downtrend until it found support at its long-term base level at Rs 330 in February. Since then the stock has been consolidating sideways in a broad band between Rs 330 and Rs 410.
This significant support provided back up for the stock in late June. Sideways consolidation of the stock signals a positive bias from a long-term perspective.
On July 29, the stock climbed 2 per cent with above average volumes breaching its key moving average compression (21, 50 and 200-day moving averages) at around Rs 375. The 14-day relative strength index has entered into the bullish zone from the neutral region and weekly RSI is on the verge of entering into the bullish zone. Daily moving average convergence divergence indicator has signalled a buy.
Further both daily and weekly MACD are featuring in the positive territory implying upward momentum. Moreover, daily as well as weekly price rate of change indicators are hovering in the positive terrain signalling buying interest.
We are bullish on ABG Shipyard from a medium-term perspective. We believe that the stock has the potential of trending northwards and reach our price target of Rs 460 in the medium term. However, we do not rule out a minor pause at around Rs 430. Investors with medium-term perspective can consider buying the stock with stop-loss at Rs 350.
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wats is this buy calls?
and where do v have to use those passwrd