Investors with a short-term horizon can buy the stock of Gati at current levels. The stock is in an intermediate-term downtrend. However, it found support at its significant long-term range between Rs.125 and Rs.130 in late August.
In early November, Gati tested the support band and started to trend upwards. On Thursday, it rose 3.4 per cent and closed above its 21- and 50-day moving averages, which is a positive sign.
Moreover, there has been an increase in daily volumes over the past five trading sessions. For the week, the stock has gained 7 per cent.
The relative strength index on the daily chart is moving higher in the neutral region while the weekly RSI has entered the neutral region from the bearish zone. Both the daily and weekly price rate of change indicators are hovering in the positive territory.
As the stock is reversing higher from a significant support band with positive momentum, the short-term view is bullish. It can extend its rally to Rs.160 and Rs.170.
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