Coal India has corrected around 47% since it made all time high of 446 in August 2015. It made low at 233 after correcting 47% in August 2017. On daily chart we see some upward movement and formation of double bottom. This looks like classical W bottom. Using Bollinger band technique for chart analysis; we see left hand side of W bottom has tagged lower Bollinger band while right side of W is no; indicating relative high. Price closed above 20 SMA (Mid Line of BB) and tagged upper Bollinger band on 5th September. There after showing strength in consecutive days. 265 could act as resistance where we can see consolidation of the stock and forming base before reversal. I would recommend taking long position and ride on long term BULLISH trend for coal India.
Comment:
We got good upside on Coal India from recommended price of 265. we are at a point of resistance now. Hence one could be care full with the stop. To continue ride the uptrend maintain stop loss of 280.