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K Seshadri
BHEL is losing steam on the short run. The scrip took off from Rs 229 on September 2. It posted a high of Rs 256.70 on September 9. But on that day itself, the scrip had formed a key reversal.
A key reversal happens when a scrip at the peak of its climb posts an intra day high by a considerably big leap, but ends up closing lower. On Thursday, the scrip opened at Rs 248, lower than the previous close of Rs 250. It's intra day high at Rs 253 was short of the previous high of Rs 256.70. The low for the day was Rs 247, lower than the previous low of Rs 248.80.
It closed at Rs 248.10. It lost close to Rs 2 day over day. The daily stochastic indicator has triggered a sell. More importantly, in terms of Japanese candlestick pattern, it has formed what is called a Tristar Top, which is a bearish signal. This signal is formed based on the behaviour of the last three days. It would be advisible to book profit at the counter, as the scrip could pull back to Rs 240 or Rs 228 levels. Short sellers could coverthemselves preferably at Rs 258.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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