The stock of DEN Networks surged 4 per cent breaching its 200-day moving average on Monday. Investors with a short-term perspective can buy the stock at current levels. Following an intermediate-term downtrend, the stock recorded a 52-week low at ₹100 in early February. Subsequently, the stock reversed direction and started trending higher. It formed an ascending triangle pattern — a bottom reversal pattern in this scenario — and broke out of the horizontal line of this pattern at around Rs.132 in early May.
The short-term trend is up for the stock. It hovers well above the 21- and 50-day moving averages. As the stock has decisively breached its long-term resistance at around Rs.132 coupled with the bullish reversal pattern, the short-term outlook has become bullish. The stock can extend its current rally and reach the price target of Rs.154 and Rs.157 in the coming trading session. Buy the stock with a stop-loss at Rs.145.
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