Justification:
After surpassing a strong resistance zone of `202 – ` 208 during the month of May 2014, we witnessed a significant up move of more than 40% in very short span. This was followed by a ‘Time-wise’ as well as ‘Price-wise’ correction, which was important from the longer term perspective. Considering past 6 to 8 day’s movement, it seems that the stock has cemented its position around the strong support zone of daily ’89 EMA’, which coincides with the 61.8 % Fibonacci Retracement Level of the up move seen from `176.65 (low on May 05, 2014) to `291.50 (high on May 26, 2014). During the session, we are witnessing some early signs of revival as the prices managed to surpass its smaller degree (hourly chart) trading range of `231 to `223 along with substantial increase in volumes. Thus, we advise traders to buy this stock from current level to a decline up to `228 for a target of `250 in coming 2 – 3 weeks. The stop loss for this trade set up can be kept at `222.
Recommendation
Buy BHEL at 232 – 228 Target 250 Stop Loss 222
After surpassing a strong resistance zone of `202 – ` 208 during the month of May 2014, we witnessed a significant up move of more than 40% in very short span. This was followed by a ‘Time-wise’ as well as ‘Price-wise’ correction, which was important from the longer term perspective. Considering past 6 to 8 day’s movement, it seems that the stock has cemented its position around the strong support zone of daily ’89 EMA’, which coincides with the 61.8 % Fibonacci Retracement Level of the up move seen from `176.65 (low on May 05, 2014) to `291.50 (high on May 26, 2014). During the session, we are witnessing some early signs of revival as the prices managed to surpass its smaller degree (hourly chart) trading range of `231 to `223 along with substantial increase in volumes. Thus, we advise traders to buy this stock from current level to a decline up to `228 for a target of `250 in coming 2 – 3 weeks. The stop loss for this trade set up can be kept at `222.
Recommendation
Buy BHEL at 232 – 228 Target 250 Stop Loss 222
No comments:
Post a Comment