Shitij Gandhi
Sonata Software has been maintaining its uptrend and trading in a rising channel since the beginning of the year. However, from the past five weeks, prices were seen fluctuating in falling channel as the stock was making lower highs and lower lows pattern on daily charts.
This week, the channel breakout has been observed above the falling trend line along with positive divergence on the RSI which is a bullish signal for the stock.
Traders can accumulate the stock in a range of Rs 370-375 for the upside target of Rs 412 with a stop loss below Rs 345.
Disclaimer: The author is Senior Research Analyst, SMC Global Securities Ltd. The views and investment tips expressed by investment experts 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.
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