The outlook for Dabur India is bearish. Investors with a short-term perspective can consider selling it at current levels. The stock fell 1.5 per cent on Monday. It has been trading in Rs.260-285 range since October.
While trading within this band, the stock marked a high of Rs.281 earlier this month, but declined sharply by about 15 per cent thereafter. With this fall, the stock has breached an important support at Rs.265.
The stock also trades well below its major moving averages. Additionally, there is a head and shoulder reversal pattern visible on the chart. The continuous fall since January 6, that took the stock well below its neckline support level of Rs.265, confirms the pattern.
This strengthens the bearish outlook on the stock. Immediate resistance is at Rs.240. The stocks also faces a strong resistance between Rs.243 and Rs.245. The stock can fall to Rs.230 levels. Traders with a short-term perspective can go short. Stop-loss can be kept at Rs.244 for a target of Rs.230.
No comments:
Post a Comment