[Premium] Trade Of The Week

Firstsource Solutions Ltd has been performing well since the market recovery and has clocked a new all-time, reclaiming levels last seen in 2008.

Closing near the high, the price breakout in FSL has been accompanied by the RSI moving into the overbought region on the weekly and daily charts. This move on both timeframes suggests strength and bullish momentum in the counter.

The price attempted to break above it's resistance on two occasions over the previous month and confirmed the breakout with a strong bullish candlestick last week. The rising 200-DMA adds to the long-term positive sentiment in the stock.

We are bullish above our risk management level of 83, for a target of 119.

Click on chart to enlarge view.

Relative to Nifty IT, FSL has broken above its two-year resistance and seems ready for it's next leg of rally in the weeks and months ahead.

As can be seen from the charts above, FSL is strong on both absolute and relative basis and we are bullish in this counter above 83, for a target of 119.

Thanks for reading and please let us know if you have any questions.

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Allstarcharts Team