August 6: After showing an impressive uptrend from Rs 681 to Rs 1311 during the first quarter, the stock price of Hero Honda remained in a corrective phase in the second quarter of the year. In its corrective phase, the stock declined to Rs 752 in the first week of July.However, since then, the stock has been showing positive signs. After a week of consolidation, by touching a level of Rs 952, the stock has given a fresh-break out and is hinting at a sharp rally in the near future.
The position of oscillators like RSI and MACD are also bullish. The 21-day RSI has moved up after forming a positive divergence. The MACD too has formed higher bottom and is in a bullish mode. The buy signal is further confirmed by an impressive jump in volumes. As such, traders can take a long position for short-term gains. Keep a stop loss at Rs 875.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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