Buy in Mercator Lines from a short-term horizon. 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.