The stock of Uflex gained 6 per cent, accompanied by above average volume, breaking above a key resistance level of ₹347. This rally provides traders with a short-term perspective an opportunity to buy the stock.
The stock has been on an intermediate-term uptrend since March low of ₹119. In late August, the stock had encountered a key resistance at ₹375 and began to decline. Thereafter, it witnessed a corrective decline until it found support at ₹300 in late September.
The stock again took support at ₹300 in mid-October and continued to trend upwards. Last week, the stock had conclusively breached both the 21- and 50-day moving averages and trades well above them. The daily as well as the weekly relative strength indices are hovering in the bullish zone, backing the uptrend.
Moreover, the daily price rate of change indicator features in the positive terrain, implying buying interest. Outlook is bullish and the stock has potential to trend upwards and reach the price targets of ₹370 and ₹378 levels. Trader can buy the stock with a stop-loss at ₹348 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)