Buy Provogue; target of Rs 81.50: IIFL

“Provogue has given a breakout from the downward sloping resistance line on the daily chart after it closed above its 20-DMA with sporadically high volumes on Thursday. Daily chart shows a breakout from a falling wedge pattern. Yesterday’s low of Rs 70 is likely to act as solid support line for such breakout. We expect stock price to rally from here on and test levels of Rs 80 in coming days. Such back to back confirmation on short term and medium term chart supports our buying argument at current levels and provides better risk-reward ratio. Based on above technical analysis, we recommend traders to buy the stock above Rs 74.50 with stop loss of Rs 71 for target of Rs 81.50,” says IIFL research report.

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