With the Friday's rally upto Rs 112, the Corporation Bank scrip has given a fresh buy signal. The position of the stock has been improving steadily in the recent past. After the first quarter's rally upto Rs 157, the stock had entered into a corrective phase. This trend lasted till the level of Rs 92. The rally which started from this level ended at Rs 132 and the stock again entered the corrective phase.However, the stock did not go below the Rs 92 level. Thus, the stock posted a higher bottom at Rs 98 and since then the position has improved steadily. The latest jump to Rs 112 is nothing but a fresh signal for a bullish outlook. In fact, the latest jump in stock price has been supported by higher volumes. The position of oscillators has also changed.
The 21-day RSI has posted higher bottoms. Similarly, the medium term MACD is above the triggerline and has been hinting at further improvement. As such, long position can be taken for short-term gains. Keep a stop loss at Rs 98.
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