Investors with a short-term perspective can buy the stock of MOIL at current levels. The stock has jumped 6 per cent, accompanied by above average volume, on Wednesday, decisively breaking above a key near-term resistance at ₹156.
Moreover, there is a formation of a flag pattern, with resistance at ₹156 after a sharp 13 per cent gain on March 30, 2021. The stock has now resumed the up-move following a minor pause. It has breached the 21- and 50-day moving averages and trades well above them. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and weekly RSI is also likely to enter the bullish zone from the neutral region.
With the recent up-move the stock appears to have resumed the medium-term uptrend that has been in place since it took support at ₹122 in late November 2020. Both the daily and the weekly price rate of change indicators are featuring in the positive terrains, implying buying interest. Overall, the short-term outlook is bullish. It can continue to trend upwards and reach price targets of ₹167 and ₹170 in short term. Traders can buy with a stop-loss at ₹156.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)