TORRENT POWER LTDShort
Triangular Action in “Torrent Power”
Updated
Outlook :
The stock has been consolidating in a range of Rs 241-210 from March 2017 till date and seen constructing a higher troughs & lower peaks forming a pattern “Symmetrical triangle” (red converging lines), which is considered to be indecisive in nature.
The said pattern generally regarded as a period of consolidation before the price moves beyond one of the identified trendlines and a break below the lower trendline(as in our case), is a strong signal which indicates prices to move lower.
This week, the stock also broke the recent lows of 218 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.
Technical indicators are currently giving negative signals as the stock trades below the short term and medium term (50 day SMA) moving averages. Momentum indicators like the 14-day RSI are in decline mode.Daily negative swing indicator like -DMI is dominating (shown in orange object).
Combining the above technical evidences, we expect stock to slide lower and therefore recommend Sell on this stock at (price range 219-215) with an downside price target of 196-183 / Lower. Strict stop loss should be placed just above 235 which the bearish view will be voided.
The stock has been consolidating in a range of Rs 241-210 from March 2017 till date and seen constructing a higher troughs & lower peaks forming a pattern “Symmetrical triangle” (red converging lines), which is considered to be indecisive in nature.
The said pattern generally regarded as a period of consolidation before the price moves beyond one of the identified trendlines and a break below the lower trendline(as in our case), is a strong signal which indicates prices to move lower.
This week, the stock also broke the recent lows of 218 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.
Technical indicators are currently giving negative signals as the stock trades below the short term and medium term (50 day SMA) moving averages. Momentum indicators like the 14-day RSI are in decline mode.Daily negative swing indicator like -DMI is dominating (shown in orange object).
Combining the above technical evidences, we expect stock to slide lower and therefore recommend Sell on this stock at (price range 219-215) with an downside price target of 196-183 / Lower. Strict stop loss should be placed just above 235 which the bearish view will be voided.
Trade closed: target reached
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