We recommend a buy in Geodesic from a short-term trading perspective. It is evident from the charts of Geodesic that it was on a medium-term downtrend from its December 2008 high of Rs 95 to late January 2009 low of Rs 38. This low is apparently a 52-week low of the stock. It reversed direction from here and has been on a medium-term uptrend.
On March 6, the stock jumped by 15 per cent, conclusively penetrating its medium-term down trendline. The volume was above average during this jump. Moreover, the stock crossed its 21-day moving average, reinforcing the bullish momentum.
The daily relative strength index (RSI) is rising in the neutral region towards the bullish zone. We notice prolonged positive divergence displayed in weekly RSI. Moving average convergence and divergence indicator is signalling a buy. We are bullish on the stock from a shortterm perspective.
We expect the stock to move up further until it hits our price target of Rs 58 in the upcoming trading sessions.
Traders with short-term perspective can consider buying the stock while maintaining a stop-loss at Rs 49.
On March 6, the stock jumped by 15 per cent, conclusively penetrating its medium-term down trendline. The volume was above average during this jump. Moreover, the stock crossed its 21-day moving average, reinforcing the bullish momentum.
The daily relative strength index (RSI) is rising in the neutral region towards the bullish zone. We notice prolonged positive divergence displayed in weekly RSI. Moving average convergence and divergence indicator is signalling a buy. We are bullish on the stock from a shortterm perspective.
We expect the stock to move up further until it hits our price target of Rs 58 in the upcoming trading sessions.
Traders with short-term perspective can consider buying the stock while maintaining a stop-loss at Rs 49.
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