On daily chart Mercator has formed Head and Shoulder pattern and recently it has given breakout from the Shoulder 2 with higher volume than average daily volume. Stock successfully broke 20 and 50 DMAs but still trading below 100 and 200 DMAs at 23 and 23.3 respectively which may act as a strong resistance upside. Once stock crossess 50% retracement of previous bullish rally which is Rs 25, stock can be said to have changed it its trend from bearish to bullish.
High risk trader can buy at CMP (21.75 on 29 july 2012) or on every dip u get till 20 with short term target of 27.
Stop loss at 19 recommended.
