The share price of Siemens has been consolidating around the of Rs .1290-1300 for the last three weeks signalling base formation at the major being the confluence of:
The long term support joining the major highs of Rs .1396.45 (October 2015) and 1356 (July 2016).
of the previous major up move from Rs .1012 (November 2016) to recent highs of Rs .1471.35 placed at Rs .1295.
Currently, the stock prices have corrected which resulted as a pullback after a breakout from a “Symmetrical Triangle” pattern occurered on (April 2017 at above Rs .1315).
Previous session showed a sharp surge in prices with a decsent amount of volumes from or near major support levels, indicates stock to resume its uptrend in coming month.
Moreover, as per analysis, 20-days has crosssed above 50-Days which is a indication,
On the stock witnessed a “Bullish harami” pattern as on 29/06/2017 and a” Three inside up” pattern was formed till closing of previous session.
14-DAY is heading above 60 levels which indicates a sharp move in prices in mid term.
We believe the stock has the potential to move Higher in the coming weeks as it attempts to test its previous intermediate Highs of Rs .1471. We therefore recommend a Buy at CMP or at (price range 1305-1325). Our entry levels, along with stop loss and targets have been mentioned above.