KRBL

We recommend a buy in KRBL from a short-term trading perspective. It is apparent from the charts of KRBL that it was on an intermediate-term downtrend between late July 2008 and early March 2009, from Rs 150 to Rs 42. However, the stock reversed direction, after finding support around Rs 42. Since early March the stock has been on a medium-term uptrend, forming higher peaks and higher troughs. In mid-April, the stock conclusively penetrated the intermediate-term down trendline as well as the 50-day moving average. On May 20, the stock decisively broke out of its significant resistance at Rs 70 by advancing 10 per cent. We notice that there is an increase in volume over the past two trading sessions. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is heading towards this zone. We are bullish on the stock from a short-term horizon. We expect the stock’s up-move to continue until it hits our price target of Rs 85 in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 72.
via BL