The stock of Videocon broke out of its sideways consolidation phase as well as a key long-term resistance at ₹180 by surging 7.4 per cent on Thursday. Investors with a short-term perspective can buy the stock. The short-term uptrend of the stock which commenced from the support level at ₹160 in early May is in force. While trending up, the stock decisively breached its 50- and 200-day moving averages this week, strengthening its short-term uptrend.
The relative strength index on the daily chart is featuring in the bullish zone. The weekly RSI has just entered the bullish zone after a long period, which implies greater strength in the trend.
The moving average convergence divergence indicator has signalled a buy and has entered the positive territory. A strong rally over the week and break through of a key resistance are key features indicating that the stock’s short-term outlook is bullish. The short-term targets are ₹193 and ₹197. Buy the stock with a stop-loss at ₹181.*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*