Top Trending stock: Lemon Tree Hotels
The stock of Lemon Tree is extremely bullish and has soared nearly 5% in Thursday’s trading session.
Lemon Tree Hotels is a smallcap company, engaged in the stay and leisure business. It operates a chain of upscale business and leisure hotels throughout India. With a market capitalization of about Rs 4100 crore, it is one of the most promising company in its sector.
The stock of Lemon Tree is extremely bullish and has soared nearly 5% on Thursday’s trading session. Moreover, the stock has jumped over 12% since Tuesday’s low of Rs 46.70 and has recorded rising volume during the process. It has witnessed a strong bounce from its 20-DMA and 100-DMA and gained sharp momentum thereafter. Moreover, it has also taken out its near term resistance of Rs 52.30. Thus, the price action is in the favour of the bulls.
Along with strong price action, several technical parameters point towards the bullishness of the stock. The 14-period daily RSI has entered the bullish territory above 60. The MACD has also given a bullish crossover above the zero line. Interestingly, all the key moving averages have an upward slope and demonstrate the bullish nature of the stock. With today’s rise, the Elder Impulse System has also signalled the buying period in the stock. The other momentum oscillators and indicators are in line with the ongoing bullishness of the stock. With today’s rise, the stock has crossed above the 50% Fibonacci retracement of its recent downfall. To add further, the stock has recorded above-average volume which is greater than 10-day and 30-day average volume.
On YTD basis, the stock has outperformed most of its peers and the broader market. It has generated over 11% returns during the period and is bullish for the short term. With such strong momentum, the stock is expected to test its prior swing high of Rs 55 and thereafter Rs 60 level. Short term traders/ positional traders can include this stock in their watchlist to track further development.
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