Mercator lines looking really strong on chart for trading for short term ( less than 1 month ) .It is
perceptible from the charts of the stock that since its March low of Rs
21 the stock has been on an intermediate-term uptrend. However, after
encountering resistance at Rs 76 in June, the stock went through a
medium-term correction till the July low of Rs 42.

Later, the stock
resumed its uptrend, taking support in the Rs 42-45 band. In
mid-September, it crossed the 21-day and 50-day moving averages and is
currently trading way above them. On October 8, the stock jumped 9 per
cent, accompanied by high volumes and began to shape a flag pattern.
The daily relative strength index (RSI) is featuring in the bullish
zone and the weekly RSI is on the brink of entering this zone. Both the
daily and weekly moving average convergence and divergence indicators
are hovering in positive territory. Taking into consideration that the
stock’s intermediate-term uptrend-line is intact we are bullish from a
short-term perspective. We expect it to move up until it hits our price
target of Rs 72. Traders with a short-term perspective can buy the
stock while maintaining a stop-loss at Rs 61.5.