"Edelweiss can be bought at current level and on dips to Rs 270 with a stop loss below Rs 260 for target of Rs 310 levels," says Ashish Chaturmohta, Head Technical and Derivatives at Sanctum Wealth Management.
Edelweiss Financial Services has been in long-term uptrend forming higher tops higher bottoms and touched all-time high of Rs 309 in the month of November last year.
The stock then corrected down to Rs 224 levels, retracing 38.2 percent of the major rally from low of Rs 82 in December 2016 to high of Rs 309. The stock has formed bullish double bottom reversal pattern on the daily chart at the support level and the price is at breakout levels.
Weekly Relative Strength Index has given positive crossover with its average after six months suggesting a change in trend. Daily MACD has moved above neutral level of zero suggesting the stock is seeing strength on the upside.
Thus, Edelweiss can be bought at current level and on dips to Rs 270 with a stop loss below Rs 260 for target of Rs 310 levels.Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.