We recommend a buy in the stock of Thomas Cook from a short-term perspective. The stock was in a corrective mode since the peak at Rs 76.5 recorded on October 10. But this decline halted towards the end of August and the stock is attempting to move higher since then. The stock broke free of its 21- as well as 50-day moving averages on Wednesday. The volume recorded was also higher than the average over the last three months.
The relative strength index in the daily chart is attempting to move higher into the bullish zone implying short-term strength. The stock also recorded a two-month high in the last session. Traders can buy the stock with stop at 60.9. It can move up to Rs 63.4 or 65 in the sessions ahead.