Ucal Fuel Systems

Investors with a short-term trading perspective can consider buying the stock of Ucal Fuel Systems. The down-trend from the January peak of Rs 110 halted at Rs 64 after the stock retraced 50 per cent of the previous up-move. A steady short-term uptrend is however unfolding from the trough at Rs 64. The higher troughs formed from this level are encouraging. The stock also managed to close above the near-term resistance at Rs 80 this week.

The weekly rate of change oscillator has just moved above the zero line suggesting the commencement of a medium-term uptrend. Daily rate-of-change oscillator as well as the relative-strength-index is featuring in the bullish zone. The stock reversed higher from the short-term uptrend line on Thursday. It can now move higher to Rs 86 or Rs 90 in the days ahead. Investors can buy the stock with the stop-loss at Rs 79.

via BL