JM Financial stock has been doing all the right things for last many months. Does that mean stock is a BUY? May be yes technically
Have a look at the chart
As you can see in the chart above: here are two reasons to be excited –
- Volume Momentum: The pick up in volume is the most important thing a trader can look for. It suggests huge interest in the stock.
- Multiple Lows at 11.6: The stock has formed multiple lows at 11.6 this year which indicates strong support and if you add volumes to the analysis – it means strong accumulation at lows.
Considering – how interest is returning to the market: it’s quite possible that initial interest in the stock may generate strong momentum and stock may take out 200 dma effortlessly this time and propel stock to munch higher levels. What’s even better: we have well defined support at 11.6 and any breach of this level would mean exit. A target of 19 looks quite feasible over next 2-3 months if stock and market holds up over this time.
Please do your own due diligence before trading