BHUMIT-ARQ
Short

Bharatforge Sliding From Rising Wedge

NSE:BHARATFORG   BHARAT FORGE
77 views
1
Targets : 980-865 Sell range : 1060-1050 Stoploss : 1120 Duration : 4-5 weeks

Rationale :
The attached daily timeframe chart of BHARATFORG has been steadily moving up over the last many weeks.
After posting 52-week highs of 1175.80 (Touched on 03rd May 2017), stock has been continuously making lower tops and lower bottoms.
This week, the stock also broke the recent lows of 1085 and also staged a downside breakout of a “Rising wedge” like pattern (black ascending line) on the back of healthy volumes, which indicates that selling was intense and the stock looks set to continue the next leg of its downtrend.
Moreover, stock has closed below its important pivot levels, which signals a further downside till the next support levels.
Technical indicators are currently giving negative signals as the stock trades below the short term (13 day SMA ) and medium term (50 day SMA ) moving averages. Momentum indicators like the 14-week RSI are in decline mode and are not yet in oversold territory. Minus DI has crossed above Plus DI , which shows a negative strength.for the stock.
Negative overall technical set up in this stock is hinting at the possibility of a beginning of downside momentum in the stock price from here.
The overall negative chart and momentum pattern is suggesting a short trade setup for near term.One may look to sell this stock as per levels mentioned above.
Trade closed: stop reached

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out