Technical Analysis

JSW Steel (₹291.2)

Yoganand D BL Research Bureau | Updated on March 05, 2018 Published on March 05, 2018

Investors with a short-term view can sell the stock of JSW Steel at current levels. The medium-term uptrend that began in December 2017 low of ₹237 encountered resistance at ₹320 in late February this year. The stock has reversed lower after recording a 52-week high at ₹320.5 last week. Over the last four trading sessions, the stock has been declining.

On Monday, the stock tumbled 4.7 per cent with an above average volume, breaching the medium-term up trend-line decisively. Also, the stock has breached its immediate support at ₹300. With this slump, the short-term outlook has turned bearish for the stock. The daily price rate of change indicator is featuring in the negative territory implying selling interest. The daily relative strength index is likely to enter the bearish zone from the neutral region.

The stock has breached its 21-day moving average and trades well below it. It can extend the near-term downtrend and reach the price targets of ₹279 and ₹273 in the ensuing trading sessions. Traders with a short-term perspective can sell the stock with a stop-loss at ₹297.5.

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

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