We recommend buying the Aftek stock. From the weekly chart of Aftek it is clear that it has been on an uptrend from its June 2006 low of Rs 40. However, the stock met with a resistance at Rs 97 in February 2007 and has been in a sideways consolidation mode since then. The stock's price action since February has formed a symmetric triangle pattern. On December 7, the stock broke out of this pattern by surging 11 per cent, accompanied by heavy volumes. The stock is currently trading well above the 50-day and 200-day moving average lines. The daily momentum indicator is featuring in the bullish zone and the weekly momentum indicator is on the verge of entering this region. The immediate support for the stock is at Rs 70 and the next is at Rs 57. Short-term investors can buy the stock at current market price while keeping their stop-loss at Rs 74. We expect the stock to move up to Rs 95 in the short-term.
Via Businessline
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