The stock of Ambuja Cements fell 2 per cent breaching its key immediate support level of ₹258 on Wednesday. Investors with a short-term horizon can sell the stock at current levels. Though the stock’s long-term trend is up, its short-term uptrend came to a halt after marking an all-time high at ₹286 in early March. The stock recently formed a shooting star candlestick pattern, a bearish reversal pattern on the weekly chart, and fell 6.5 per cent, confirming the reversal.
The relative strength index on the daily chart is on the brink of entering the bearish zone from the neutral region and weekly RSI has entered the neutral region from the bullish zone. The daily moving average convergence divergence indicator has signalled a sell. The short-term outlook is bearish for the stock. It can continue to decline and reach our price target of ₹242.5 and then ₹237.5 in the upcoming sessions. Sell the stock while maintaining a stop-loss at ₹258.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.