Comments
We recommend a sell in the stock of United Phosphorus from a short-term perspective. It is apparent from the charts of the stock that following a strong rally from its key support level at Rs 115, it encountered resistance at Rs 165 in early June 2013. Triggered by negative divergence in the daily relative strength index and moving average convergence divergence indicator, the stock changed direction. Sine then, the stock has been on a short-term downtrend. On Friday, the stock fell 4 per cent emphatically breaching its key support at Rs 140 level. The stock is hovering well below its 21 and 50-day moving averages. The daily relative strength index has re-entered the bearish zone from the neutral region and weekly RSI is charting downwards in the neutral region. The daily MACD is declining in line with the stock price and has entered the negative territory indicating downward momentum. The daily price rate of change indicator is featuring in the negative area implying selling interest. We are bearish on the stock from a short-term perspective. We expect its downtrend to continue and reach our price target of Rs 130 or Rs 127.5 in the approaching trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 139 level.
(The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
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.