Renuka Sugar - Bounced From Cluster Support

Renuka Sugar (CMP: 21.2) - is displaying a positive outlook on the daily chart. The stock has fallen sharply from the intermediate top (24.5) and now it has taken the support of 19.5 level. The price has tested the  cluster support as well as 100 Day EMA & bounced from there with strong positive candle which indicates bulls are in momentum. The stock has given bullish triangle break out on the hourly chart. The stock is trading above 20/40 EMA which shows positive sign. Now the stock is heading towards 22.5 – 23.5 levels which is cluster resistance level. The strong support level placed at 19.9.     On the daily chart RSI has given positive crossover which signs strength.

                       

Recommendation: Traders can buy at CMP or buy on dips to 20.95 – 20.5 level with a stop loss of 19.9 (Closing basis) for target of 22.5 – 23.5 levels.