Buy Mercator; target of Rs 19.40: Way2Wealth

Way2Wealth's report on Mercator

Mercator Lines has provided a good breakout from an inverse head and shoulders pattern. The breakout is seen with an increase in volumes which is shown in the chart above with an ellipse. The momentum indicator MACD continues to be in buy mode and it has also moved above it zero reference line. The conservative target on the upside is 18 and the aggressive target comes to 22, however, our target is 19.40 i.e. close to the previous swing high of 19 levels. The support on the lower side is pegged at 13.90 i.e. the recent low of the triangle formed at the neckline of the Inverse head and shoulders. Investment Strategy:
Buy Mercator Lines at CMP of Rs 15.40 for the target of Rs 19.40 with a stop loss of Rs 13.40
Risk: Reward: 1: 2
Risk: 15.40 – 13.40 = 2
Reward: 19.40 – 15.40 = 4 Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their 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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