EMCO

Investors with short-term trading perspective can buy the stock of Emco. The stock is moving in a band between Rs 75 and Rs 105 since last June. Within this band, the stock was in a downtrend since January 18 that halted at the key medium term support of Rs 74 towards the end of May. A short-term uptrend is in progress since this low that has taken the stock beyond the key resistance at Rs 82. The stock opened with an upward gap on Thursday and moved up accompanied by strong volumes.

The daily moving average convergence divergence oscillator is on the verge of signalling a buy and the 10-day rate of change oscillator is attempting to move above the zero line in to the bullish zone. These oscillators imply that the near term view on the stock is positive and the uptrend can sustain. The stock can move higher to Rs 87 or Rs 92 in the days ahead. Short term investors can buy the stock with stop at Rs 81.

via BL