Raymond's counter has attracted huge jump in volumes in the past few trading sessions. Not only the daily volumes, the scrip price has also jumped up from Rs 43.50 to Rs 54.50. This is a positive indication for the technical position of the stock. If it crosses the Rs 58 level during the ongoing rally, it would be a fresh break-out for the stock.Even if it does not cross this level in the current rally, there are great chances of a higher bottom. An assumption of a higher bottom is based on the divergence formed by the oscillators. The 21-RSI has formed clear positive divergence. Similar divergence can also be seen on the medium term MACD chart. The medium term MACD is above the triggerline. The price is already above both the moving averages.
All these factors suggest a positive outlook for the stock. Since the stock is expected to remain firm in the near future, long position can be taken now and on every decline. Keep a stop loss at Rs 43.
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