The stock of Oriental Bank of Commerce surged 4.8 per cent with good volume breaking out of a flag pattern on Wednesday. This breakthrough gives a buying opportunity for the investors with a short-term perspective. Since taking support around ₹220 in early October, the stock has been on a medium-term uptrend. After decisively breaking a key resistance at ₹295 in late November, the stock took support at this level and extended its uptrend in mid-December. The short-term trend is also up for the stock. It is trading well above its 21- and 50-day moving averages.
Both the daily and weekly moving average convergence divergence indicators are hovering in the positive territory backing the uptrend. The short-term outlook is bullish. The stock can extend its rally and reach the flag pattern price target of ₹343.5 and then ₹350 levels in the short-term. Buy the stock with a stop-loss at ₹323.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)