Following a sharp rebound from the key support level of Rs.300, the stock encountered a significant resistance around Rs.331 last week. The stock has come off slightly from these resistance levels.
The relative strength index in the daily chart is showing a negative divergence and has entered the neutral region from the bullish zone. Any declines can find support around Rs.316 initially. Only a strong fall below this level will alter the near-term uptrend and pull the stock down to Rs.300 levels.
Else, the stock can move sideways between Rs.316 and Rs.331 for a while. The stock needs to emphatically break the resistance at Rs.331 to extend its up move to Rs.345 levels, where the 200-day moving average line is poised.
To alter the medium-term downtrend, the stock has to move past the significant resistance level of Rs.355. Such a rally can take it higher to Rs.370 levels in the medium term.
No comments:
Post a Comment