Indian Overseas Bank recommended from a short-term view
- Indian Overseas Bank recommended from a short-term trading perspective. It is clearly evident from the charts of Indian Overseas Bank that after encountering major resistance in the band of Rs 80-85 in early January 2009, it began to decline.
- The stock decisively penetrated a support at Rs 60 in late January and was on a medium-term downtrend till early March low of Rs 37. This low is also a 52-week low. It reversed from this level and has been on a medium-tem uptrend since then.
- The stock broke above its medium-term down trend-line and 21-day moving average in late March and continued its up move. On April 9, the stock breached its 50-day moving average, gaining 3 per cent.
- Volume is increasing for the past two trading sessions. The daily relative strength index (RSI) has entered in to the bullish zone and the weekly RSI is on the brink of entering in to the neutral region from the bearish zone.
- Moreover, the daily moving average convergence and divergence indicator is likely to enter positive territory. Its bullish on the stock from a short-term perspective.
- It move up until it hits price target of Rs 60. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 50.
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Its already in 58-59 levels(market is not yet open when i wrote this), then when can i catch it for a meagre target of Rs.60