FED­ERAL BANK

Flash News Investment - - YOUR TECHNICAL PORTFOLIO GUIDE - - Madhu Venkat­acha­la­iah

Can I en­ter in Fed­eral Bank for a 10 per cent up­side move?

BUY FED­ERAL BANK ABOVE RS 84 ON A CLOS­ING BA­SIS.

Fed­eral Bank is cur­rently trad­ing at Rs 80.70. Its 52-week high/low stand at Rs 116.75/Rs 67.05 made on Jan­uary 15, 2018 and Oc­to­ber 4, 2018, re­spec­tively. Af­ter hit­ting its 52-week high, the stock cor­rected sharply and halted its cor­rec­tion near the ris­ing trend­line on the monthly time frame. The stock formed a bullish en­gulf­ing-like can­dle­stick pat­tern on the monthly time frame as on the month ended Oc­to­ber 2018. On the weekly scale, the stock is con­sol­i­dat­ing near its down­ward slop­ping trend­line re­sis­tance zone since last five weeks with rel­a­tively low vol­umes. Consolidation near re­sis­tance zone and re­jec­tion from lower lev­els are sug­gest­ing chan­nel re­sis­tance is likely to break. The 14-pe­riod daily RSI is quot­ing at 59.52 and re­cently it has given pos­i­tive crossover. Hence, we sug­gest buy­ing Fed­eral Bank only af­ter it man­ages to close above Rs 84.

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