Jindal Steel & Power Ltd : Short Term Investment
This stock has been going through an ascending triangle type consolidation in the past few weeks. A failure to exceed 740 levels clearly suggested that the bears were in force to absorb every demand near these levels. However the minor higher bottom formation during this consolidation with the help of a trend line gives a clear indication of the active buying materializing during subsequent dips. On Friday the prices jumped above the said hurdle and closed at a new rally high.
The pattern is formed at the higher end of the rally, with volumes and momentum being in sync and probably suggests that the stock is getting ready for some tremendous move on higher side. The technical set up on charts is interesting and promises to drive the prices higher once the follow up buying is seen in today’s session.
We advise buying above 746 for the pattern target at 880. Important levels to watch out for is 829. Stoploss below 720.
Source : IDBI
Popularity: 4% [?]
Category: Broker tips, Short Term
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