On Tuesday, the stock of Dish TV India fell 4 per cent accompanied by extraordinary volumes, reversing from a key resistance level at Rs.120. Investors with a short-term perspective can take this opportunity to sell the stock at current levels. Following a medium-term uptrend from the early May low of Rs.71, the stock encountered resistance at Rs.120 recently. Triggered by negative divergence in the daily relative strength index and moving average convergence divergence, the stock is on the brink of changing its trend. Moreover, the stock has formed a bearish engulfing candlestick pattern which also suggests a downward reversal.
The short-term outlook for the stock is bearish. The stock’s decline, now underway, can extend in the upcoming trading session and reach the price target of Rs.108 and Rs.106. Traders with a short-term view can sell the stock with a stop-loss at Rs.115.5.
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