Technical Analysis

DLF (₹170.7): Sell

Yoganand D BL Research Bureau | Updated on July 18, 2018 Published on July 18, 2018

Investors with a short-term horizon can sell the stock of DLF at current levels. The stock tumbled almost 5 per cent accompanied by an above average volume breaching a key support at ₹180. Since encountering a key resistance at ₹273 in January this year, the stock has been in an intermediate-term downtrend. Both the medium and short-term trends are also down.

In early May, the stock decisively breached its 200-day moving average and has been trading well below it since then. Moreover, the stock trades way below its 21- and 50-day moving averages. The daily as well as weekly relative strength indices feature in the negative territory. The stock has plummeted 9 per cent this week, strengthening the downtrend. Both the daily and weekly price rate of change indicators feature in the bearish zone implying selling interest.

The short-term outlook is bearish for the stock. It can continue to decline and reach the price targets of ₹164 and ₹160 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹174.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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