Welspun-Gujarat Stahl Rohren

We recommend a buy in Welspun-Gujarat Stahl Rohren from a short-term perspective. From the charts of Welspun-Gujarat Stahl Rohren we observe that it has been moving down steadily since it recorded the peak at Rs 537 in January. This decline halted in July at Rs 269. This is a significant support level and the stock has reversed firmly from here. The reversal gained impetus by the positive divergence in the weekly relative strength index (RSI).The RSI in the daily chart too is moving in to the bullish region, denoting that this up trend can gain strength. Another oscillator, the daily moving average convergence and divergence has also entered the positive territory. The stock is currently positioned above its 21 and 50-day moving averages denoting a short-term trend reversal. We are bullish on the stock in the short-term horizon. We expect its current up move to prolong until it hits our price target of Rs 387 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 332.

via BL