I wish to buy shares of UBL Ltd. Should I buy at the current price?
AVOID UNITED BREWERIES FOR NOW
UBL is currently trading at Rs 851. Its 52-week high/low stand at Rs 958/Rs 715.80 made on October 13, 2016 and April 18, 2017, respectively. Considering the daily time frame, the stock has been trading in the range of Rs 775-855 since December 2016. The volumes are low and the 14-period RSI is quoting at 56. However, recently the stock is trailing at its multiple resistance level of Rs 855, but it has failed to sustain above this level on a closing basis, barring one whipsaw breakout on September 25. Thereby, we suggest you to avoid for now and enter only above Rs 870 level on a closing basis for bigger targets and stop losses as the stock shows tremendous intra-day volatility.