Aban Offshore

We recommend a buy in Aban Offshore stock from a short-term trading perspective. It is evident from the charts of Aban Offshore that after taking support around Rs 230 in early March, it bounced up and began to trend upwards. A medium term uptrend developed from this trough. The stock is trading well above its 21 and 50-day moving averages. On May 14, the stock conclusively broke through a key resistance around Rs 490 by gaining 7 per cent. Moreover, we notice high volume during the advance days of the uptrend. The daily relative strength index has entered in the bullish zone from the neutral region. The weekly RSI has entered in the neutral region from the bearish zone, with prolonged positive divergence supporting the trend reversal. Considering that the medium-term up trendline is intact we are positive on the stock from a short-term horizon. We expect it to move up until it hits our price target of Rs 560 the forthcoming trading session. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 482.