On the daily charts, ITC has been hovering around its 200-days exponential moving average (DEMA) for more than two months in a broader range of Rs 270-290 supported with consistent buying at lower levels.
The consolidation in prices has formed a Symmetrical Triangle pattern on the daily charts and last week also witnessed a fresh breakout above the triangle pattern with marginally higher volumes.The breakout suggests that follow up buying can move stock toward the north in coming sessions as well. Traders can accumulate the stock in a range of Rs 292-297 for the upside target of Rs 313 levels and a stop loss below Rs 280.
(The author is a Senior Research Analyst, SMC Global Securities Ltd.)
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