[Premium] Trade Of The Week

June 19, 2021

This week we're looking for a long setup in the Consumer goods sector. With the market finding its way around, defensives like Consumer goods are picking up pace.

Today we will share one such idea that stands out from a risk-reward perspective.

Radico Khaitan has been one of the strong names in the market rally until now. In the week gone by, we got a confirmation of a breakout again. The price closed above the level of 740 moving past its overhead resistance. One glance at the indicator and the strength in this stock becomes obvious.

But what about relative strength? Well, this stock is strong on both absolute and relative terms.

We are bullish above the level of 740, with a target near 1,165.

Click on chart to enlarge view.

It is important to note that the market is still fine-tuning the song it wants to sing. This is not a buy-anything kinda market. Our risk-on indicators are rolling over suggesting that the stocks that will outperform will be limited.

At such a time defensives such as consumer goods gain more strength.

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