Stock Pick for the day: Lenovo Group

Stock pick of the day

Recommendation Buy

Target : 12.50 & 13

Recommended Price : 11.80

Stop Loss: 11.50

STOCK SUMMARY:-

Major trend of stock is upward on chart. It has traded in short term 

down trend in last 2 weekly trading session. Now It has been 

showing a good bounce back from bottom with good volume. Now 

it is facing resistance at 11.80. We recommend the stock to buy the 

stock if it crosses its resistance of 11.80. One can keep the stop loss 

at 11.50 and stock is likely move north ward in upcoming session 

as it has taken support of 50 on daily chart and targets of 12.50 & 

13 can be seen in short term,

CHART FORMATION:-

Stock was forming descending wedge with the resistance of 50 

DMA and 200 DMA on hourly chart and now it has give upside 

breakout from its upper resistance line and likely to show 

northward movement in upcoming session as it is forming inverse 

head and shoulder.

INDICATORS:-

MACD Line is likely to cross its single line, which can bring 

upward momentum in the stock.

RSI is also trading above 40 mark on daily charts and showing 

conversion with prize trend.

On ADX positive DI Placed above negative DI and expanding of 

bullish gap can take ADX above 25 mark.