We recommend a buy in Wanbury at current market price. From the weekly chart of Wanbury it is clear that it has been on a steady long-term uptrend since the March 2007 low of Rs 99.
However, the stock met with a significant long-term resistance at Rs 155 level in early November and began to move sideways. Following a month’s sideways consolidation, the stock is once again testing this resistance level. The stock is currentl y trading well above the 21-day and 50-day moving average line.
The daily and weekly momentum indicators are featuring in the bullish zone. Steady rally in the moving average convergence divergence indicator is a bullish sign. The immediate support for the stock is at Rs 140 level and the next support is at Rs 125 level.
Moreover, the long-term uptrend is intact. We expect the stock to break through the current resistance and move up to Rs 175 in the short-term. Short-term investors can buy the stock with stop-loss at Rs 138.
via BL