Alembic

Traders with short-term perspective can consider investing in the stock of Alembic. The stock was on a long-term uptrend since October 2008 low of Rs 24.7. It found twin support (uptrend-line and key support level) at Rs 45 recently and started to move upward. On March 23, the stock jumped 7 per cent accompanied with heavy volume, penetrating the 50-day moving average. It is trading well above the 21- and 50-day moving averages. There has been an increase in volumes over the past three trading sessions. The daily relative strength index is featuring in the bullish zone and weekly RSI is on the verge of entering this zone. Moreover, the daily moving average convergence and divergence indicator is likely to enter the positive territory while the weekly indicator is already hovering in this territory. The stock's recent jump has reinforced the bullish momentum and projects positive short-term outlook. We expect the stock's bullish momentum to continue until it hit our price target of Rs 53 and then Rs 55. Short-term traders can enter the stock while maintaining stop-loss at Rs 47.5

via BL