Omax Auto

Investors with a short-term trading perspective can buy the stock of Omax Auto. The stock formed a medium-term peak at Rs 71 on January 11 and is in a medium term downtrend since then. This downtrend halted above the long-term 200-day moving average at Rs 44 after it had retraced about 46 per cent of its prior up-move. That makes it likely that the nascent uptrend from the February 8 low can sustain for a few more sessions. It is apparent from the daily chart that after a two-session halt, the short-term uptrend resumed on Wednesday. The stock has the potential to rally higher towards its 50-day moving average positioned at Rs 57 in the near-term. Movement of the oscillators in daily chart support the continuation of the current up-move. Daily moving average convergence divergence oscillator has just generated a buy signal while the rate of change oscillator is on the verge of moving above the zero line. This stock can be bought with the stop at Rs 48.5 and the targets of Rs 55 and Rs 57.

via BL