ZF Steering

Investors with a short term trading perspective can consider buying the stock of ZF Steering. This stock is in an extended sideways moving consolidation pattern in the range between Rs 290 and Rs 220 since January this year. The zone around Rs 240 was a strong support for this stock in this period. It reversed higher from here in January and March this year. The stock once again rebounded from this zone on Wednesday accompanied by strong volumes. A bullish engulfing candle is also apparent in the daily candlestick chart. The key short-term support for this stock also occurs at Rs 242 that is 61.8 per cent retracement of the prior up-move.

Oscillator charts in the short-term time frame are signalling reversal of the downtrend that began in the last week of April. 14-day relative strength index is moving up from oversold zone. There is a likelihood of the stock moving higher. Investors can buy the stock for short-term gains with the stop loss at Rs 248. Short-term targets for the stock are Rs 261 and Rs 266.

via BL