"The stock can be bought at current level and on dips to Rs 275 with a stop loss below Rs 264 and a target of Rs 330 levels," says Ashish Chaturmohta, Head Technical and Derivatives at Sanctum Wealth Management.
Gujarat Ambuja Exports is in a long-term uptrend forming higher tops higher bottom patterns. After touching high of Rs 280 levels in the month of January stock went into sideways trading range as it consolidated gains over the next three months.
During this phase, volumes were below average suggesting market participants holding onto to the positions. On Monday, the stock witnessed breakout from this consolidation with strong price momentum and high volumes to close at new all-time of Rs 282 and start of a fresh uptrend.
The price has given a breakout from Bollinger bands. Expansion of bands suggests that the trend is likely to continue in the direction of the breakout.
MACD has moved above neutral level of zero suggesting a change of trend from sideways to higher. Thus, the stock can be bought at current level and on dips to Rs 275 with a stop loss below Rs 264 and a target of Rs 330 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.