The current position of price chart and oscillators suggest that the stock price of Asian Paints will continue to remain bearish. The stock has been on a downtrend for quite some time now.Fresh signs of weakness are evident from the latest penetration of an upward trendline. With the latest fall to Rs 252, the stock has broken its 17-month upward trendline. The short-term trendline has been broken long time ago.
In the process, the moving averages (12-day and 36) have also entered into negative phase and stock price is hovering below both these averages. The position of oscillators are equally depressing. As such, while short-term rally cannot be ruled out, the stock is likely to remain bearish in the medium term. Thus, short-term rally should be used for a quick exit.
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