JBF Industries

We recommend a buy of JBF Industries stock from a short-term perspective. It is apparent from the charts that in December 2008 the stock had bottomed out and has since been on a longer-term uptrend, forming higher peaks and higher troughs. While trending upward the stock broke through various key resistance levels. A significant resistance level at Rs 80 turned into a key support level. Taking support at this level in November 2009, the stock resumed its long-term uptrend. The stock's medium-term trend continues to be up since November. On January 8, the stock gained almost 8 per cent, accompanied with heavy volume, breaching resistance at Rs 110 and is trading way above its 21- and 50-day moving averages. The daily relative strength index is hovering in the bullish zone and weekly RSI also is featuring in this zone. The daily moving average convergence and divergence indicator is steadily heading higher in the positive territory. Considering that the uptrend-line is intact, we are positive on the stock from a short-term horizon. We anticipate the stock to rally until it hits our price target of Rs 124. Traders with short-term perspective can consider buying the stock with Rs 106 as stop-loss.
via BL