Targets: 639-616 Sell range : 683-673 Stoploss : 709 Duration : 3-4 weeks
Rationale : :
Attached Daily timeframe chart of The Ramco Cements is indicating a bearish trend reversal, as the stock price has given a negative breakout from an upward sloping channel, with sudden rise in volumes.
The attempt to move up in the last couple of months have been failed and the stock price has now shifted into fresh decline during this week.
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 at 43 are not yet in oversold territory.
Daily negative swing indicator like -DMI has been dominating and is moving up consistently. Daily trend strength indicator like 13 period ADX is turning up from near 16-20 levels.
Normally, ADX turning up from near 16-20 levels could be considered as a beginning of fresh trended move in the underlying on either side.
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.
We believe the stock has the potential to move lower in the coming weeks as it attempts to test its previous intermediate lows.
We therefore recommend a Sell at CMP and selling more on any rises. Our entry levels, along with stop loss and targets have been mentioned above.
Rationale : :
Attached Daily timeframe chart of The Ramco Cements is indicating a bearish trend reversal, as the stock price has given a negative breakout from an upward sloping channel, with sudden rise in volumes.
The attempt to move up in the last couple of months have been failed and the stock price has now shifted into fresh decline during this week.
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 at 43 are not yet in oversold territory.
Daily negative swing indicator like -DMI has been dominating and is moving up consistently. Daily trend strength indicator like 13 period ADX is turning up from near 16-20 levels.
Normally, ADX turning up from near 16-20 levels could be considered as a beginning of fresh trended move in the underlying on either side.
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.
We believe the stock has the potential to move lower in the coming weeks as it attempts to test its previous intermediate lows.
We therefore recommend a Sell at CMP and selling more on any rises. Our entry levels, along with stop loss and targets have been mentioned above.