Monday, December 21, 2009

Bhartiartl: Short Trade

On Hourly charts, today bharti artl has given a break down at Rs. 314 forming an Inverted Cup and Handle with Cup Lip at 314. I expect the stock to trade down with stop loss above the cup at a 321. Based on the distance from the Cup top to lip, the stock seems to be poised for downside of approximate 284 with possible support and resistances marked on the chart.

On EOD basis, the stock has closed below 50 SMA and is currently below all its leading moving averages. As such, it can be said that the rise from Dec start was merely an upward break after selling pressure, the stock major support at 280 to 270 zone.

A Close below that could propel a massive Head and Shoulder formation. However, there are various checks and balances for the completion of formation. But for now on EOD basis watch 280 to 275 zone. Based on intraday data analysis, the stock reaching 284 zone is highly probable.

Based on Swing indicator, the stock has today broken 5 to 9 days swing. A close below 309.05, could lead to a 10 days swing break.

Verdict: Short
Current trailing SL 313
The black channel on Hourly chart hold for downtrend, break above that could also lead to change in position.

Following are basic Support and Resistance levels to be watched for Bharti for current week and current month.
Pivots Monthly Weekly
S2      246.00      302.75
S1      273.00      310.00
Pivot      299.50      322.45
R1      326.00      329.70
R2      352.50      342.15
 S: denotes Support, R denotes Resistance

Disclaimer: These studies are based on technical analysis and the author nor the webpage shall be responsible for the profits or losses. The author may or may not have personal holding.
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