Rei Agro

Investors with a short-term trading perspective can buy Rei Agro. This stock was one of the underperformers of 2009 and declined from Rs 103 to Rs 39.8, between June and November last year. The weak uptrend since the November low, could not take the stock past Rs 64 and the stock is again in a downtrend, over the last two months. That said, the stock reversed from the key short-term support at Rs 49 on Wednesday. A bullish engulfing candle was formed, in the daily chart, in the last session. The stock also recorded strong volumes in that session. Oscillators in the daily chart support the continuation of the up-move that began on Wednesday. The 10-day rate of change oscillator moved above the zero line and the 14-day relative strength index is hovering in the neutral zone. What is more heartening is the fact that the stock took support at its medium-term trend-line and reversed up in the last session. The stock could continue to rally higher to Rs 54 or Rs 56 in the upcoming sessions. It can be bought with stop at Rs 49.5.

via BL