Gabriel India

Gabriel India faces strong long-term resistance in the range between Rs 38 and Rs 44. The stock reversed from this zone in December 1994 and then in April 2006.

This zone arrested the stock's rally this January as well and it reversed lower from the peak of Rs 43.9. The correction from this peak was however quite mild and the stock is taking support at the 38.2 per cent retracement of its rally from the March 2009 trough.

A short-term uptrend is in progress since February 26 in this stock. The strong 8 per cent surge on Monday accompanied by record volumes implies that the third leg of this uptrend could have started. The stock managed a strong close above its 50-day moving average as well as its short-term trend line on Monday.

The 10-day rate of change oscillator has moved in to the positive zone and the 14-day relative strength index that has moved to 58 denoting short-term strength. Investors with short-term trading perspective can buy the stock with the target of Rs 37 and Rs 38.6. Stop-loss can be placed at Rs 33.8.

via BL