The stock can be bought at current levels and on dips to Rs 535 with a stop loss below Rs 510 and a target of Rs 620 levels, says Ashish Chaturmohta of Sanctum Wealth Management.
RBL Bank has been trading sideways to negative between Rs 600 to Rs 450 odd levels for more than a year now. It formed bullish inverted head and shoulders pattern on the weekly chart and is currently trading at neckline/breakout level.
The price has given breakout from Bollinger band with the expansion of band and closed above upper band suggesting start if fresh uptrend in the direction of the breakout.
The stock has seen above average volumes in the last five sessions with a positive movement indicating buying participation in the stock.
Thus, current price structure and momentum is suggesting that the stock is likely to see a breakout on the upside. The stock can be bought at current levels and on dips to Rs 535 with a stop loss below Rs 510 and a target of Rs 620 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.