Positional call – BUY ECLERX above 720 sl 590 target 850-1000

holding period – 3-6th month

Technical study –  If we look at the chart development, then we can clearly identify that after a consolidation in a range of 600-700 now stock has started to move up by moving above its resistance line,  and even it able to give close above its 100MA level and already moving above its 200MA which is near 650 range.

even if we consider last trading session on 31/05/2013 it can tell us that there is strong buying interest in stock with the price jumping up with rise in average volume.

stock has formed rectangle channel pattern on chart and on last trading session it able to break this pattern and given a breakout close above channel.

Finally when we come to RSI we can spot that is a convergence on chart, as price is making lower tops and stable bottoms and RSI making higher tops and higher bottoms, it meas RSI started to move upside but price was falling and now it also started to move up now,  so its really kind of breakout situation, but we need to wait for proper level to cross as convergence to confirm proper.

So with regards with all above patterns and indicators we assume that if price able to move above 720 and able to give close above this, then we can surly see some upside breakout, as it will confirm breakout in chart patterns and even RSI can give some bullish convergence.