However, after encountering resistance at Rs 84 this July, the stock started declining and was on a medium-term corrective downtrend. Significant long-term support in the band between Rs 63 and Rs 65 arrested this fall. Thereafter, the stock began moving higher and it decisively penetrated its downtrend line as well as the moving average compression around Rs 68, surging 6 per cent with good volume.
The stock gained 10 per cent last week, reinforcing the bullish momentum.
The 14-day relative strength index has entered the bullish zone and weekly RSI is heading towards this zone in the neutral region.
Daily moving average convergence divergence oscillator has signalled a buy and is on the brink of entering positive territory. The weekly MACD is featuring in the positive territory implying upward momentum. Daily price rate of change indicator is hovering in the positive territory and weekly indicator has just entered this territory resulting in buying interest.
We are bullish on Geometric on a medium-term perspective. The stock has the potential to trend higher to hit our price targets of Rs 80 and then Rs 85 in the approaching weeks.
Investors with medium-term perspective can consider buying the stock with stop-loss at Rs 67.
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