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Disclosure
Technically what’s wrong with the stock? Let us analyze the price
chart.
http://groups.google.com/group/theindiastreet/web/DISHTV.JPG
The support trendline has a positive slope during the uptrend. This
was broken on June 5. All was not lost, though. But the most critical
support or the horizontal support line was broken on July 11. Watch
the resistance trendline with the negative slope. The stock has not
been able to pierce this line and close above it. This confirms the
bearishness of the stock in the short term.
http://groups.google.com/group/theindiastreet/web/IGS.JPG
http://groups.google.com/group/theindiastreet/web/JBCHEPHARM.jpg
Both weekly and daily charts are displayed above. This stock has
fallen from 139.80 in February 2006 to current low of 69.55 (almost
50%). One more example of a stock losing half its value in this
fantastic bull market. Technically this stock is still not fit to enter. In
weekly charts, watch the previous support at 74 being broken; in daily
chart it has broken its short term support at 71.
Moreover there is a very strong resistance at 84.75 which needs to be
comfortably pierced before one can really think of investing or trading
in this stock.
http://groups.google.com/group/theindiastreet/web/SUNDRMFAST.JPG
One can see the consolidation pattern in the above chart from 19
March 2007. On 10 July it broke its horizontal support and closed
below it. The stock is expected to continue the bearish trend. Last
support exists at 50.05 in the weekly charts. We will have to wait and
see whether this one holds or not.
SUNDARAMURTHY VADIVELU
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