Apollo Tyres

We recommend a buy in the Apollo Tyres stock from a short-term trading horizon. It is visible from the charts of Apollo Tyres that it has been on an intermediate-term uptrend since its March low of Rs 14.7. This low is apparently a 52-week low for the stock. It has been forming higher peaks and higher troughs since. While trending up, the stock conclusively broke through key resistances at Rs 20 and Rs 26 in early April and early May respectively. Besides, it breached the 200-day moving average and is trading way above this level. We notice above-average volumes over the past five trading sessions. After taking support from the intermediate-term up trendline on June 16, the stock jumped 9 per cent with heavy volumes. Both daily and weekly relative strength index (RSI) are featuring in the bullish zone. The weekly moving average convergence and divergence indicators have entered positive territory. Considering that the stock’s intermediate-term uptrend line is intact; we are bullish on it from a short-term perspective. We anticipate the stock’s rally to prolong until it hits our price target of Rs 39.Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 33.

via BL