Investors with a short-term perspective can consider selling the stock of UPL at current levels. The stock encountered key resistance at Rs.567 in late May and started moving sideways in the band between Rs.506 and Rs.567. The upper boundary at ₹567 limited the stock from rallying further in early August and the stock commenced its decline.
On Thursday, the stock tumbled 4.5 per cent with above-average volume, decisively breaching its 21- and 50-day moving averages and the lower boundary at Rs.506. The short-term trend is down. The daily relative strength index has entered the bearish zone from the neutral region. Both the daily and weekly price rate of change indicators hover in the negative terrain. The short-term outlook for the stock is bearish. It can extend its ongoing decline and reach the price target of Rs.476 and then Rs.466 in the upcoming sessions. Traders with a short-term horizon can sell the stock with a stop-loss at Rs.507.
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