MUMBAI, Sept 11: Thermax is all set to enter into a bearish phase -- indications of such a bearish outlook are clearly evident in the price chart. As it can be seen in the chart, a rally in the first-quarter of the year was followed by a correction. This correction started at Rs 299 and went on till Rs 123.A rally after this fall was nothing but a technical correction to the previous fall. The stock had moved up from Rs 123 to Rs 211. However, with the recent fall to Rs 175, the stock price has dipped below the short-term trendline. As far as the moving averages are concerned, the short-term average has fallen below the medium-term average, a negative sign.
The oscillators have also given similar signals. Volumes have also shown a bearish trend. As the short-term outlook appears negative, an exit at the current level of Rs 182 seems logical. Re-entry can be considered at lower levels.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
