Ø
Looking
at the daily chart, DCB Bank has seen spectacular run-up from the
bottom of around 100 and hit a fresh all-time high of 213 during mid
June, 2017.
Ø
Subsequently,
the bullish momentum faded, and stock witnessed sharp profit booking.
However, the fall got arrested near 166 which coincided with the weekly
45-EMA.
Ø
Broadly
speaking, after sharp fall; stock entered in consolidation phase and
form a ‘Descending Triangle’ pattern which is a continuation pattern.
Ø
In
today’s session, stock confirmed its breakout from said triangle which
was supported by the daily RSI (14) that broke the bearish divergence
trend line (please find
the exhibit).
Ø
The weekly 9-45 EMA is positive and indicates that the overall correction was merely a pullback of its primary uptrend.
Ø
On
a monthly chart, we are seeing exhaustion and the current month candle
is likely to form a positive candle after four consecutive negative
candles.
Ø
Considering
the above technical parameters, we expect resumption of primary trend
hence we advocate positional traders to buy this stock at current level
of 188.50
with an upside price target of 226. Strict stop loss should be placed
at 170 below which our positive view will be negated.
SHORT TERM BASE DELIVERY CALL>>>>>>>>>>>>>>>>
Dear All kindly read declaimer before entering any call.
