Here is our technical pick of the week, City Union Bank. This stock is set to zoom up after nearly months of upwards consolidation. The stock is one of the few gems which is available at lesser price than pre-covid rates. Over last 6 months, it has been settling with an upward triangle kind of formation. It has got sticky resistance at price of 163, which is still over 9% away from current price at 149.5. Once the stock stays above 150, it will zoom upside till around 164 where it may stay for few weeks. After 168 is broken, then we will be looking towards 200.
The key Stop loss levels for the stock settles at 118 which is not expected to be broken in any condition unless we get some unforeseen issue with the bank or the world economy. Needless to say this is a generic risk which is applicable for all equity instruments.
Considering the positive risk rewards, high upside potential and limited downside risk, this is a long term stock that must be kept in your portfolio. Consider the pattern in below snapshot for instance. Added to this the fact that F&O positions in the stock are showing long positions.
