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Investors with a long-term perspective can buy the shares of Finolex Industries (₹151.4) at current levels. The stock has been forming a strong base above the 200-Week Moving Average. This moving average support is currently at ₹129. This gives an early sign that the downtrend that has been in place since November has been coming to an end.
Resistance is at ₹162. A strong break above it will confirm the trend reversal. It will also confirm a double bottom reversal pattern on the chart. Such a break can take the stock of Finolex Industries to ₹200 initially over the next three to six months.
From a long-term perspective, the move to ₹200 will keeps the doors open for Finolex Industries to ₹300 over the next one-two years.
Long-term investors can buy Finolex Industries at current levels. Accumulate at ₹140 and ₹135. Keep a stop-loss at ₹105. Trail the stop-loss up to ₹170 as soon as the stock touches ₹200. Move the stop-loss further up to ₹210 when the stock rallies to ₹260. Book profits at ₹280.
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