Sizzling Stocks - Wockhardt (Rs 336.6)





The stock, which was decimated in December 2011, found support at its long-term base level at around Rs 250 during the first week of this month. However, it changed its direction triggered by positive divergence in the daily relative strength index. The stock skyrocketed 23 per cent accompanied by good volume, conclusively breaking through its key long-term resistance level at Rs 313 in the previous week.



With this rally, the stock appears to have resumed its long-term uptrend that has been in place since bottoming out in March 2009.



Nevertheless, the presence of significant long-term resistance at Rs 375 raises eyebrow. An emphatic jump above this resistance will lift the stock northwards to subsequent key level of Rs 450 in the medium-term.



Key resistance above Rs 450 are positioned at Rs 473 and Rs 513.



But, failure to move above Rs 375 will pull the stock down to Rs 313 and then to Rs 290 in the medium-term.



ABB (Rs 705.8)



After constantly testing the long-term resistance band between Rs 880 and Rs 900 from April 2011, the stock reversed lower in September 2011.



Since then, it was on a medium-term downtrend until it found support at Rs 541 in mid-December 2011.



Thereafter, the stock bounced up reversing its trend and has been on a short-term uptrend. Last week, it zoomed 21 per cent with good volume support, penetrating resistance at Rs 663.



Retracing almost 50 per cent Fibonacci retracement level of its prior downtrend, the stock is facing resistance at Rs 718. After testing this resistance, a strong jump above it will take the stock higher to Rs 765 and then to Rs 800 in the weeks ahead.



Failure to move above Rs 718 will drag the stock down to Rs 663 initially and then to Rs 625 levels.

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





Related

This article is closed for comments.
Please Email the Editor