We recommend a sell in United Phosphorus from a short-term perspective. From the charts of United Phosphorus, we note that the stock has been on a medium-term term down-trend from its January high of Rs 425. However, following a corrective pullback rally from the March low of Rs 228, the stock met with a resistance at around Rs 300 recently.
We see that the corrective pullback rally of the stock has retraced 38.2 per cent fibonacci retracement level of the medium-term downtrend.
The stock appears to have resumed the medium-term downtrend from the resistance level of Rs 300 by forming a bearish engulfing candlestick pattern.
The daily momentum indicator has started declining, after encountering resistance at around 60 levels. Considering that the medium-term trend continues to be down, we are bearish on the stock in the short-term.
We expect the medium-term down-trend in the stock to prolong to our target price level of Rs 250 in the upcoming trading sessions. Investors with short-term perspective can sell the stock, while keeping the stop loss at Rs 306.
We see that the corrective pullback rally of the stock has retraced 38.2 per cent fibonacci retracement level of the medium-term downtrend.
The stock appears to have resumed the medium-term downtrend from the resistance level of Rs 300 by forming a bearish engulfing candlestick pattern.
The daily momentum indicator has started declining, after encountering resistance at around 60 levels. Considering that the medium-term trend continues to be down, we are bearish on the stock in the short-term.
We expect the medium-term down-trend in the stock to prolong to our target price level of Rs 250 in the upcoming trading sessions. Investors with short-term perspective can sell the stock, while keeping the stop loss at Rs 306.
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