Dabur, CEAT: Two stocks that are flashing bullish signals on tech charts

The risk reward ratio for CEAT looks highly lucrative at current levels to go long for a bounce.

BUY DABUR | TARGET: Rs 605 | STOP LOSS: Rs 565

A couple of sessions back; the stock of DABUR confirmed a breakdown from the bearish Head and Shoulder pattern at the level of 570. The after it found support exactly at the placement of 200 DEMA and 200 DSMA. From there the stock has reversed and indicates possibility of failure of HnS pattern. Generally in such scenario; stock undergoes a faster rally on the upside. Hence, Traders are advised to buy the stock near 580 with a stop loss of 565 for the upside potential target of 605 in 2 – 3 weeks.

BUY CEAT | TARGET: Rs 1,250 | STOP LOSS: Rs 1,110

Since the month of Oct 2021 the stock CEAT has been in a corrective mode and entered oversold zone in smaller time frames. During the process it has found support at the placement of 200 DEMA and 200 DSMA on the weekly time frame which is a very strong support. The risk reward ratio looks highly lucrative at current levels to go long for a bounce. Thus; traders are advised to buy the stock near 1160 with a stop loss of 1110 for the upside potential target of 1250 in 2 – 3 weeks.

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Disclaimer: Mehul Kothari is AVP – Technical Research at Anand Rathi Shares & Stock Brokers. He may or may not have positions in the above mentioned stocks. Views are personal.