Excel Industries: Buy long

K Seshadri

Excel Industries has laid the foundation for a move up. Earlier it had declined from around Rs 180 to Rs 140. On the daily charts the stochastic indicator has not signalled a buy. But on the other hand the swift movement upwards indicates that it is time to enter here. You should place a stop loss at Rs 130. On the weekly chart, both the stochastic and RSI indicator are on the buy mode.

The scrip has made good preparation for travelling on a horizontal line for quite some time. And therefore it is proper for one to take a position. It is sometimes not possible to predict that the scrip will really catch fire upwards. But in this case, if the scrip moves up, the reward could be handsome. In case it fails to gather momentum, you should liquidate the position after a reasonable wait.

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