After falling in the previous session, UCO Bank shares again turned bullish, gaining 6 per cent in Thursday’s trade. With this, UCO Bank shares have gained 46 per cent in the last seven trading sessions. Technical analysts say that the momentum is positive and there are chances of more gains for UCO Bank stock in the coming sessions, who see the next resistance for the stock in the region of Rs 22-23.
The stock rose 5.9 per cent to hit an intraday high of Rs 21.19 on the BSE. The stock had fallen 4.5 per cent in Wednesday’s session, but has gained 46 per cent in the past seven sessions.
Pravesh Gaur, Senior Technical Analyst, Swastika Investmart said that the counter has experienced an uptrend in recent days after breakout of a long consolidation. With heavy volume on the charts, there was a breakout of an inverse head and shoulders formation from lower levels, he said.
“The overall structure is bullish as the stock trades above its all SMA moving averages, and momentum indicators are also lined up positive. On the upside, Rs 23-23.50 are important and strong psychological resistance levels from where we can expect profit booking While on the downside, Rs 17 will be a support during any downside.”
Tirthankar Das of Ashika Stock Broking said that buying demand for UCO Bank emerged from the key support area of Rs 10 and the subsequent pullback rally led the prices to move beyond the congestion zone, thus, setting a favorable risk reward With offered a new entry opportunity. UP. Das said the stock has generated a breakout above the downward-sloping trend line since 2014.
“Earlier it made several attempts to cross the resistance zone of Rs 18-19 but it failed to do so. Currently, the breakout seems real as the volume trend has shown an accumulation which is likely to push the price higher. Signals rise in enthusiasm. There is immediate resistance. Watched around Rs 23-23.50 as it is Jan 19 swing high, sustained breach of which may propel rally towards Rs 32-33 in near term. Price Position , which could be a cause for concern in the short term,” he said.
Osho Krishnan of Angel One said that the trend has basically turned, but the possibility of a cool-off or correction in the counter after such a rally should not be ruled out. Osho said that support for the stock may extend slightly higher to Rs 18-18.50, followed by Rs 16.
He sees a strong handicap in the 22-odd field. A weekly close above this can only add a new leg to the rally, he said.
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