The stock price of United Phosphorus had shown a smart rally in the first quarter of this year. From a level of Rs 70 during mid-February, the stock touched a high of Rs 225 durinh April third week.However, in its corrective phase, the stock had fallen sharply to Rs 87 in June. Since then, the performance of the stock is improving steadily.
For the first time in the last three months, the stock has moved above the moving averages (12-days and 36-day). This is a positive sign. The latest jump in stock price has also been supported by high volumes.
Meamwhile, the position of oscillators has also strenthened. The 21-day RSI has formed a positive divergence. The medium term MACD has also turned bullish. Overall, if one were to go by the price chart, oscillators, and volume, the stock is likely to remain bullish in the near future. Long position can be taken for 10-15 per cent returns. Keep a stop loss at Rs 75.
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