Gujarat Mineral Development Corporation is the latest stock that seems to be trying to ride the Modi wave. The stock which for a long time was a pretty good market performer took a serious plunge in 2013 with the stock falling by 65% in a matter of months. The stock has since slowly crept higher and today made a fresh breakout from its recent range.
While the stock continues to remain weak on the longer time frame, the breakout coming in at the 200 EMA level does provide for a low risk entry with the initial target being at the very least 24% above the current price.
A weekly close below the 200 day EMA would on the other hand communicate the failure of the breakout and would be a good stop loss to consider.