After an impressive rally during the the first quarter, from Rs 20.50 to Rs 42.50, the stock price of SPIC has failed to maintain the uptrend. Since then, the stock has been on a steady decline and had recently touched a low of Rs 20.50. Thus, wiping out all the gains recorded during the first quarter.The future outlook, however, appears bright. The stock enjoys a good support at the level of Rs 20. Besides a strong support, the oscillators like MACD and RSI have also given a positive divergence. The divergence shown by these oscillators is nothing but a sign of a possible turnaround. In fact, the weekly MACD has moved above the triggerline, a strong positive sign. The price has also moved above the short-term moving average.
Even if the stock shows a 33 per cent retracement of its previous fall, the rally would be impressive. As such, a long position at the current level is expected to bring good returns in the coming weeks.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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