[Premium] Trade Of The Week

JC Parets
May 16, 2022

Not much has changed in terms of the market trend. What we're observing keenly is if support levels hold in the short-term scenario. There are bouts of strength coming through in certain sectors and today's stock comes from the FMCG sector.

Do you know what we're talking about?

Varun Beverages has been a consistent performer. Regardless of market conditions, the price manages to hold on to important levels and then rallies once the storm passes.

This could be another such scenario.

The price has been sustaining above the 261.8% Fibonacci level of 1000. The fact that the price has hardly reacted to the market drop is quite the relative strength one looks for in a move. The indicator too has consistently been closer to bullish momentum territory with the RSI not dipping below 40 since the Covid crash.

We are bullish above the risk management level of 1000 with a target close to 1,416.

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Allstarcharts Team

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