The strong up move in the share price of Bharat Financial Inclusion from May 2017 bottom 651 saw the stock registered a resolute breakout above the falling joining the previous highs since October 2016 thereby signalling a reversal of the corrective trend and offers a fresh entry opportunity to ride the next up move in the stock.
The correction off February 2017 peak of 884.85 anchored near the key value area 650. The stock has witnessed a sharp rebound in the last two months indicating strong demand at the key value area as it is the confluence of the following technical parameters:
The trend reversal indicator which has acted as strong support was placed at 640 levels.
The 61.80% retracement of the previous major rally (465.10 / 884.85) also placed at 651 levels.
Weekly 14 period’s is in uptrend forming higher high and is seen sustaining above 50 levels, thus supports the positive bias in price.
Moreover, Stocks has given break out of Upper , plus has crossed above minus and weekly line is crossed over zero line in previous session.
Keeping in mind the above technical observations, we recommend a Buy in this particular stock as per levels mentioned above.