The Hindu Business Line : Brigade Enterprises (Rs 94.2): Sell

We recommend a sell in Brigade Enterprises from short-term trading perspective. It is evident for the charts of Brigade Enterprises that from its 52-week low of Rs 27.8 touched in early March, it has been on an intermediate-term uptrend. In mid-April, the stock’s uptrend accelerated penetrating the 200-day moving average. However, the stock encountered significant resistance at Rs 104 recently and began to decline. We notice formation of bearish engulfing candlestick patterns at this resistance level, indicating short-term reversal. Moreover, the stock reversal is triggered by the negative divergence displayed in the daily relative strength index. The weekly RSI, which was hovering in the overbought levels, is also falling. The volumes are declining over the past four trading sessions. Both the daily and weekly price rate of change indicators are hovering at overbought levels, signalling a likely pullback. We are bearish on the stock from a short-term perspective. We expect its fall to prolong until it hits our price target of Rs 84 in the upcoming trading sessions. Traders with short-term perspective can utilise rallies to sell the stock while maintaining a stop-loss at Rs 99.

Yoganand D

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