EKC to remain in uptrend from medium term perspective: IIFL

MUMBAI: Everest Kanto Cylinders signaled a breakout earlier this week from its neckline of inverted head & shoulders formation, says IIFL. It expects stock to remain in an uptrend.

“EKC continues to remain in an uptrend from a medium term perspective. The stock signaled a breakout earlier this week from its neckline of inverted head & shoulders formation, accompanied by spurt in volumes. Yesterday, it consolidated above its 200-DMA.
This move is likely to trigger sharp upmove towards its intermediate peak of Rs38. The positive divergence in daily RSI is also likely to ignite buying momentum in the short term. Formation of small Inverted Head and Shoulder on daily chart and bullish crossover of 10DMA and 20 DMA also support buying argument and thus provide better risk reward ratio from current levels.

Based on above observations, we recommend traders to buy the stock above Rs129 with stop-loss of Rs 125 for target of Rs 137,” the report said.

Note: Trading idea valid for time-period of 1-3 days.