markettrend766
19-12-2008, 07:05 AM
We recommend a buy in Corporation Bank from a short-term trading perspective. It is apparent from the charts that the stock was on a medium-term downtrend from its September high of Rs 303. It found isupport at the long-term support band between Rs 150 and Rs 155.On December 10, the stock opened at Rs 155 and made a smart intra-day rally to Rs 177, gaining 14 per cent from the day’s low.
The stock gradually moved up from there and on December 18, it penetrated its medium-term down trend line as well as 21-day moving average by surging 5 per cent. We note that the weekly relative strength index is displaying positive divergence, supporting the stock’s recent trend reversal. We are bullish on the stock from a short-term horizon.
We anticipate the stock to move up until it hits our price target of Rs 210 in the upcoming trading days.
Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 180.
The stock gradually moved up from there and on December 18, it penetrated its medium-term down trend line as well as 21-day moving average by surging 5 per cent. We note that the weekly relative strength index is displaying positive divergence, supporting the stock’s recent trend reversal. We are bullish on the stock from a short-term horizon.
We anticipate the stock to move up until it hits our price target of Rs 210 in the upcoming trading days.
Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 180.