Technical Analysis

Sizzling Stocks - Wockhardt (Rs 336.6)

Yoganand D. | Updated on November 15, 2017 Published on January 14, 2012



The stock, which was decimated in December 2011, found support at its long-term base level at around Rs 250 during the first week of this month. However, it changed its direction triggered by positive divergence in the daily relative strength index. The stock skyrocketed 23 per cent accompanied by good volume, conclusively breaking through its key long-term resistance level at Rs 313 in the previous week.

With this rally, the stock appears to have resumed its long-term uptrend that has been in place since bottoming out in March 2009.

Nevertheless, the presence of significant long-term resistance at Rs 375 raises eyebrow. An emphatic jump above this resistance will lift the stock northwards to subsequent key level of Rs 450 in the medium-term.

Key resistance above Rs 450 are positioned at Rs 473 and Rs 513.

But, failure to move above Rs 375 will pull the stock down to Rs 313 and then to Rs 290 in the medium-term.

ABB (Rs 705.8)

After constantly testing the long-term resistance band between Rs 880 and Rs 900 from April 2011, the stock reversed lower in September 2011.

Since then, it was on a medium-term downtrend until it found support at Rs 541 in mid-December 2011.

Thereafter, the stock bounced up reversing its trend and has been on a short-term uptrend. Last week, it zoomed 21 per cent with good volume support, penetrating resistance at Rs 663.

Retracing almost 50 per cent Fibonacci retracement level of its prior downtrend, the stock is facing resistance at Rs 718. After testing this resistance, a strong jump above it will take the stock higher to Rs 765 and then to Rs 800 in the weeks ahead.

Failure to move above Rs 718 will drag the stock down to Rs 663 initially and then to Rs 625 levels.

Published on January 14, 2012

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.