Indiabulls Real Estate

We recommend a buy in Indiabulls Real Estate from a short-term trading perspective. It is evident from the stock’s charts that after forming a triple bottom, bullish reversal pattern spanning between October 2008 and May 2009, it broke out of the neckline at Rs 160 emphatically in May. Since March low of around Rs 82, the stock has been on an intermediate-term uptrend. In mid-July, it conclusively penetrated its 21 and 50-day moving averages and is trading way above these averages. Moreover, on Monday, the stock broke through a medium-term resistance at Rs 250, on above average volume. Both daily and weekly momentum indicators are hovering in the bullish zone. The intermediate-term up trendline is intact and still in place. Our short-term outlook is bullish on the stock. We expect it to move up further until it hits our price target of Rs 288 in the upcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 247.

via BL