The above daily chart shows a bullish outlook for the short to medium term. The stock has completed its corrective phase. It reversed exactly from the trend line support (marked in Blue color). According to Elliott Wave perspective wave ii has completed and wave iii is in progress. Basically, Wave iii target will be at 161.8 % projection level of wave i. The 100% - 161.8% projection level placed at 129 – 155. In addition, channel line break out has been witnessed with higher volume & the price developments are making higher highs. Now we expected to trade higher till 129 - 155. Support will be at 89 – 87. Resistance level placed at 109 – 115.
On the daily chart the stock is trading above its 200 DMA & 100 DMA ie 85 and 80 respectively. On the weekly charts, the momentum indicators and key oscillators are giving positive crossover.
Recommendation:
Investors can accumulate the stock at current levels (104.55) or on dips till 99 levels for initial up move till 129 - 155 levels and on sustaining above 155 levels for couple of trading sessions, we expect the stock to continue its positive momentum for the next leg of up move till 210.
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