JP Associates on the daily chart is on the perfect uptrend and as the trend is up we only focus on buying it on every declines. Last 2 trading session has been interesting for the stock as we have seen stock is near to the trend line support and also just near the previous resistance which is now a support for stock. We believe fresh long positions can be initiated from the current level of 95.5 for the targets as 105.75 in short term with stop loss at 90 region. Option Traders can also take part in this trade idea, by taking long positions on JPASSOCIAT 100 call option around 2.7, with positional target as 5 and then 6. Stop loss must be based on cash level, so if stock goes below 90 you should exit option trade also.
On weekly chart, JPASSOCIAT has gave a decent breakout of the triangle pattern and its on the upside. So chances are that our trading idea is worth taking and also here we see a positive risk reward ratio which is 1:2. Slow stochastic indicator is however showing stock is not oversold, this might bring in some consolidation before fresh up side. Article written on 28 Dec 12.
See weekly chart:
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