Lloyd Electric and Engineering

Investors with short-term perspective can buy the stock of Lloyd Electric and Engineering. It is seen from the charts of the stock that it has been on an intermediate-term uptrend since its March 2009 low of Rs 13.6, forming higher peaks and higher troughs. However, after encountering resistance around Rs 85 in April 2010, the stock started to move sideways shaping symmetric triangle pattern. Generally this pattern is a continuation pattern, which is bullish in this scenario. On July 14, the stock broke out of this pattern by jumping 6.5 per cent. The volume accompanying this move was extra-ordinary. The stock is trading way above its 21 and 50-day moving averages. Both daily and weekly relative strength indices are featuring in the bullish zone. The daily moving average convergence divergence indicator has signalled a buy. Medium as well as short-term trend is also up for the stock. Our short-term forecast on the stock is bullish. We anticipate the stock to rally further until it hits our price target of Rs 91 or Rs 94 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 83.

via BL