United Breweries

We recommend a buy in United Breweries from a short-term trading perspective. It is apparent from the charts of United Breweries that it has been on an intermediate-term uptrend since late January low of Rs 67. However, after encountering resistance at Rs 160 in early June, the stock was on a short-term pull back. The stock found support at Rs 105, approximately retracing 61.8 fibonacci retracement level of it uptrend. Subsequently, the counter resumed its intermediate-term uptrend that has been intact. On July 17, the stock jumped almost 7 per cent breaching its 21- and 50-day moving averages conclusively. Daily and weekly momentum indicators are rising towards the bullish zone. We are bullish on the stock from a short-term horizon. We expect it to rally until it hits our price target of Rs 140. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 121.

via BL