Kale Consultants

Traders with short-term trading perspective can consider buying the stock of Kale Consultants. The stock found long-term significant support at Rs 20 in late 2009 and has reversed direction shaping an inverse head and shoulders pattern, a bottom reversal pattern. It broke through the neckline at Rs 60 in September 2009 and met its price objective in January 2010. However, following a corrective decline, the stock appears to have resumed its intermediate-term uptrend. The stock conclusively breached its 21-day moving average on March 5 and decisively closed above its 50-day moving average on March 16 by jumping almost 5 per cent with above average volumes.

The immediate key supports are pegged at Rs 85 and Rs 80. Both the daily as well as weekly relative strength index have re-entered in to the bullish zone from the neutral region. The daily moving average convergence and divergence indicator is on the verge of entering the positive territory while the weekly indicator is featuring in this territory. Our short-term forecast on the stock is bullish. We expect it to move up further to Rs 98 and then to Rs 100. Short-term traders can enter the stock while maintaining stop-loss at Rs 90.

via BL