Whirlpool of India

We recommend a buy in Whirlpool of India at current market price. It is clearly evident in the weekly chart of Whirlpool of India that it has been on a long-term uptrend since March 2007 trough of Rs 22. However, the stock met with a resistance at Rs 55 in mid-November and began to consolidate sideways. This sideways consolidation appears to be an ascending triangle pattern with the upper boundary at Rs 55 level. Generally, ascending triangle patterns are a bullish continuation pattern. The stock is trading well above the 21-day moving average line. The weekly momentum indicator is featuring in the bullish region and the daily momentum indicator is likely to enter the bullish region. The weekly moving average convergence divergence is gradually rising in the positive region. The immediate support for Whirlpool of India is at Rs 45 level and the next support is at Rs 37 level. We expect the stock to break out of the ascending triangle pattern and move up to Rs 60 in the short-term. Short-term investors can buy the stock with stop-loss at Rs 45.

Via BL