Stock of the Day – Amtek Auto

Amtek Auto is one of those stocks that hasn’t seen a bull rally in a really long time. Amtek peaked a bit before the 2008 market fall and while the stock has currently seen a very strong rally, its still 82% below its all time high.In fact, even after the 43% move we have seen in February, the stock trades at a price which was seen in 2004.

The trigger for the recent rally seems to be the release of quarterly earnings which came in pretty strong. Technically, as the chart below shows, we have broken a long term trend-line as also the high of 2013.

If the turnaround in the company is for real, technically we are at a stage where the risk seem small for the potential reward.

Image 

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About Prashanth

Have been a full time participant in the stock markets since 1996. Run a Yahoo Group where focus is exclusively on discussions of the Indian Markets using Technical Analysis as the tool (groups.yahoo.com/group/technical-investor)
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