��
-->
We recommend a sell in the stock of Sesa Goa from a short-term perspective. It is apparent from the charts of the stock that ever since peaking out from its April 2010 peak of Rs 494, the stock has been on a long-term downtrend. Both medium- and short-term trends are also down for the stock. In mid-May this year, the stock encountered resistance at around Rs 168 and resumed its primary downtrend. Since then, the stock has been on short-term downtrend.
While trending down, the stock breached its 21- and 50-day moving averages decisively. On Thursday, the stock fell 3 per cent accompanied by above average volume conclusively breaching its key support at Rs 144. The daily relative strength index is featuring in the bearish zone and weekly RSI has entered this zone from the neutral region. Both daily and weekly moving average convergence divergence indicators are featuring in the negative territory.
We are bearish on the stock from a short-term perspective. We anticipate its downtrend to continue and reach our price target of Rs 134 or Rs 131 in the ensuing trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 143 level.
No comments:
Post a Comment