Texmaco

We recommend a buy in the stock of Texmaco from a short-term perspective. After finding support in the band between Rs 115 and Rs 120 in late May, the stock reversed higher. The long-term trend is up from its March 2009 low of Rs 35. In early August, the stock breached its 200-day moving average as well as significant intermediate-term resistance at Rs 140 and continued to trend up. The stock is hovering well above its 50- and 200-day moving average. On Thursday, the stock climbed 3.4 per cent, penetrating its near-term resistance level of Rs 155. We notice that there is an increase in volume over the past two trading sessions. The 14-day relative strength index has re-entered in to the bullish zone from the neutral region whereas the weekly RSI is featuring in the bullish zone. Both daily and weekly moving average convergence divergence oscillators are hovering in the positive territory implying upward momentum. Our short-term forecast on the stock is positive. We anticipate it to continue its up-move until it hits our price target of Rs 164 or Rs 169. Short-term traders can buy the stock while maintaining stop-loss at Rs 154.

via BL