Citicorp Se has flared up from Rs 16 on October 30 to Rs 42.05. It is now under reaction and has retracted to Rs 37.45. The flare up has been accompanied by good volumes, which could be news based.From a technical point of view such a check (fundamental or news based) while helpful and complimentary, is not strictly essential. Readers who like to check out the background news could still do so. In any case the RSI and stochastic indicator on the weekly chart have signalled a sell.
The stochastic indicator has signalled a sell even on the weekly chart and the RSI is retracting from the very oversold area. Book your profits. Resort to short selling only if you have checked out the fundamental news.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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