The last week saw most of the stocks rallying and so did the Opto Circuits which zoomed more than 15% in just 5 trading sessions. Not only the stock was at it highs but was accompanied by great volumes to support it reach the levels of Rs.241.3 before the close on Friday. It is now way above its long term support levels of Rs.210. Now the stock appears to have change the trends upwards for at least the short term from now. The positive divergence in the daily relative strength index backs this reversal. However the stock is currently near its resistance levels of Rs.240.
The breach and shoot past this level can see a further boosts in the stocks performance making it reach near the levels of Rs.265 to Rs.270 in the medium term. After which the next level is up high in the Rs.290 levels. However failure to stay at these levels and carry the uptrend could see a correction in the stocks value to bring down the stock prices to the levels of Rs.220 or lower. The week is expected to start with a positive mood and so is the stock expected to perform better. Holding on to the stock at these levels could be a good option and booking some losses would not be a bad idea.
Bell the Bull says: Opto Circuits have been performing good over the past few trading sessions shaping the path to make higher levels.