Suzlon Energy

We recommend a buy on Suzlon Energy from a short-term trading perspective. It is apparent from the charts of Suzlon Energy that after recording a lifetime low of Rs 33 on March 12, the stock changed its trend. Since this low, the stock has been on a medium-term uptrend, forming higher peaks and higher troughs. On May 5, the stock conclusively broke through a significant resistance level at Rs 70 by gaining almost 10 per cent. Moreover, in last trading session the stock reinforced its bullish momentum by jumping 8 per cent accompanied with above average volume. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is steadily rising in the neutral region towards the bullish zone. We are bullish on the stock from a short-term horizon. We anticipate its current rally to prolong until it hits our price target of Rs 90 in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 76.

via BL