The stock of Century Plyboards surged more than 6 per cent with good volumes on Wednesday, breaking a key resistance at Rs.200. Investors with a short-term view can consider buying the stock at current levels. Following a corrective downtrend from the new high at Rs.261, the stock took support at around Rs.170 twice, in early May and June, and bounced up. But, the key resistance at Rs.200 capped its upmove for more than a month, with a narrow sideways movement around this resistance level. With the current upmove, the stock has decisively moved above its 21- and 50-day moving averages.
The daily relative strength index has entered the bullish zone and the weekly RSI is heading towards the bullish zone. Further, the moving average convergence divergence indicator has signalled a buy. The stock can extend its current rally and reach the price target of Rs.215 and Rs.219 in the forthcoming sessions. Buy the stock with a stop-loss at Rs.202.
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