Metal stocks have outperformed the sensex in the past year. The price of Vedanta has doubled in the past year and the stock is still showing strength. Recently the stock touched the yearly high of 240. Since the past few trading sessions the stock has dipped to 216 levels. This is a good price to enter this stock. The spinning top is indicative that the bear run may be near exhaustion. The A/D diverges with the price trend indicates the weakness in the current bearish pattern.
Suggest buy at current levels with potential upside to 250 and stop loss at 200.
Trade active
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First target of 230 has been achieved. Next target is 240. Book profit if stock falls below 220 levels. Currently showing spinning top pattern so next two trading sessions will be important