Technical Analysis

Tata Coffee (₹111.5): Sell

Yoganand D BL Research Bureau | Updated on January 27, 2021 Published on January 28, 2021

Investors with a short-term view can sell the stock of Tata Coffee at current levels. The stock tumbled 4.2 per cent with good volume on Wednesday, after it had encountered a key medium-term resistance at ₹120 on Monday and started to decline. On the weekly chart, it has formed a bearish engulfing candlestick pattern implying short-term trend reversal.

The short term uptrend that began from the key support at around ₹100 in mid-December last year appears to have come to an end recently and the stock is on a new down-move.

There has been decrease in volume over the past two sessions. Both the daily as well as the weekly relative strength indices have slipped into the neutral region from the bullish zone, indicating weakness. Also, the daily price rate of change indicator has entered the negative terrain signifying selling interest. Outlook is bearish for the stock. Sell it with a stop-loss at ₹114 for the targets of ₹107 and ₹104.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on January 28, 2021
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