Investors with a short-term perspective can buy the shares of Amtek Auto

Investors with a short-term perspective can buy the shares of Amtek Auto. The stock surged 3.45 per cent on Monday, and over 8 per cent in the past two trading days. The stock has been getting good support at Rs.138 for more than a month now. The candlestick pattern on the weekly chart since May signals that the stock gets fresh buying interest every time it dips to Rs.140-138 levels. Immediate resistance is at Rs.156.5 — the 100-day moving average — which is more likely to be breached in the coming sessions. Such a break can take the stock to Rs.160 and Rs.162 thereafter.

Short-term traders can go long. Stop-loss can be placed at Rs.148 for a target of Rs.159. The short-term bullish outlook will be negated and the view will turn bearish only if the stock records a strong break and closes below Rs.138. Such a break can drag the stock lower to Rs.130 thereafter. But such a sharp fall looks unlikely at the moment.