Relative strength index

CLASSROOM

 East India Hotels, after some consolidation, has now formed a cup and handle pattern which indicates bullishness at the counter. The stock has resistance at Rs 323-330 but is expected to break out of that in two-three months.  My three-month target for the stock is Rs 405 and six-month target is Rs 527. Investors can keep a weekly closing stop-loss at Rs 289. The stock currently trades at Rs 321.50.

Hitendra Vasudeo www.stockmechanics.com