Technical Pick – Dewan Housing Finance Corporation Ltd.
• DHFL is finding support at 435 and resistance above 442.
•On Daily chart, DHFL is having consolidation breakout point above 442.Break and sustain above 442 will see nonstop rally in DHFL till 449--458++ in weeks to come.
• DHFL, has been trading in a broader range of 211-468 for last one year.
• Stock was consolidating for the past one months and now has given breakout after which the short term trend is expected to turn bullish.
• Daily 14 period RSI has turned up from near levels. As per the bullish high low theory of 40-70 levels, the daily RSI is expected to move up to 70- 75 levels from the current reading of 55. This could mean Continuation of upside momentum in the stock price ahead possibly a breakout also this time.
• Traders don’t go for aggressive or positional selling at all because trend looks positive and we expect rally to remain continue till 449--458+++mark in coming weeks. For positional trade, stop loss seeing below 435 on closing basis which in unlikely to breach in near terms.
Trading Recommendation
Buy DHFL above 442 and for the initial upside target of 449—458++ mark with stop loss below 435 on closing basis.
More will update soon!!
