Pentafour Software has slipped below its 12-day's exponential moving average, which is at Rs 999.75. The scrip dipped to a low of Rs 940 and closed at Rs 993. Wednesday's drop comes from the opening level of Rs 1025 and the intra-day peak of Rs 1030.Volumes on declining price has quadrupled to 633800 shares from 153900. Price decline with increase in volume is a signal to get out. The daily and weekly RSI indicator, too, have signalled a sell. The scrip had peaked at Rs 1115 on May 27. The scrip would come to test the support line at Rs 894.
The average investor would well be advised to book his profits in view of the following.
The price has been moving down since the last six sessions, without any significant breakthrough on the upside. So, hopes of immediate and sizeable gains on the upside are unlikely to materialise. On the other hand, if the support at Rs 894 does not hold you run the risk of the scrip moving down further. It could revert back to the shoulder level of Rs 837 or to retracementlevels to around Rs 757. The long-term RSI indicator has signalled a sell on June 1. Long-term investors are advised to book profit on the rise.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
