Short-Term Investments – ITC Ltd – IDBI Capital
After forming a “hammer” pattern the prices of this counter bottomed out and the upward movement gained strength after overcoming resistance of 40-week SMA in March’09 forming a bullish candle.
The stock since then moved up nicely only to find resistance in Oct’09 of an ascending Gann line (from Jan’08 high) and we can note that the inability of the prices to rise any higher led to a collapse as prices came tumbling down during Nov 09.
The 40-week SMA came to its rescue and halted the decline in March’10 and resumed the uptrend in the following sessions. With last week’s breakout, stock surpassed the hurdle of mentioned Gann line along with strong resistance of value area around 273 signaling that bulls are now active in this counter. Last two sessions displayed rise in volumes
Signaling positive trend ahead. We advise buying at current level (282) and on dips to 268 keeping stop loss below 260 for targets around 304 / 315.
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Category: Short Term
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