SUNPHARMA is moving very strong in an upward channel. Now it is almost at the top of the channel with RSI showing 96 and Stochastick with 100. Isn't over bought ? Do you think it will break above the channel ?
Off course it may break above the channel, but in the current situation, I strongly believe that stock will correct.
Short Term:
For shorter term short the stock around 815 to 820 with a targets of 770 / 741.
50 DEMA is at 746.
200 DEMA is at 684.
Long Term:
Its time to book profits for long term users and exit the positions untill the stock consolidates to make some adjustments in RSI & Stochastic.
Stock formed a doji on 18th and 21st of Feb 2013 which shows the indecision on the stock. All long term investors get ready to book profits when they see Dojis in oversold zone. Stock rallied even after the doji formaaiton on those two days which is a symbol of strength of the stock and direction of stock moment in long term will be upward.This upward momentum after doji is could be to complete formation of its channel moment. Now it seems stock touched its top end. lets wait for some correction before initiating the long trades.
Off course it may break above the channel, but in the current situation, I strongly believe that stock will correct.
Short Term:
For shorter term short the stock around 815 to 820 with a targets of 770 / 741.
50 DEMA is at 746.
200 DEMA is at 684.
Long Term:
Its time to book profits for long term users and exit the positions untill the stock consolidates to make some adjustments in RSI & Stochastic.
Stock formed a doji on 18th and 21st of Feb 2013 which shows the indecision on the stock. All long term investors get ready to book profits when they see Dojis in oversold zone. Stock rallied even after the doji formaaiton on those two days which is a symbol of strength of the stock and direction of stock moment in long term will be upward.This upward momentum after doji is could be to complete formation of its channel moment. Now it seems stock touched its top end. lets wait for some correction before initiating the long trades.
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