markettrend766
14-11-2008, 07:15 AM
We recommend a sell in Thermax from a short-term trading perspective. It is apparent from the charts of Thermax that it has been on an intermediate-term downtrend from its August high of Rs 530. Moreover, the long-term trend is also down for the stock since November high of Rs 968. On October 27, the stock bottomed recording a 52-week low of Rs 238 and rallied up to the resistance level of Rs 350. However the stock failed to penetrate this resistance level, witnessing sell ing pressure it resumed the downtrend subsequently.
Reinforcing the downtrend the counter tumbled 8 per cent penetrating the 21-day moving average with above average volume on November 12. The daily relative strength index (RSI) has re-entered into the bearish zone and weekly RSI is already featuring in this zone. We are bearish on the stock from a short-term horizon. We expect the stock to decline further until it hits our price target of Rs 250 in the approaching trading sessions.
Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 294.
Reinforcing the downtrend the counter tumbled 8 per cent penetrating the 21-day moving average with above average volume on November 12. The daily relative strength index (RSI) has re-entered into the bearish zone and weekly RSI is already featuring in this zone. We are bearish on the stock from a short-term horizon. We expect the stock to decline further until it hits our price target of Rs 250 in the approaching trading sessions.
Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 294.