Technical Analysis

PC Jeweller (₹520.8)

Yoganand D | Updated on January 30, 2018 Published on January 30, 2018

   Investors or traders with a short-term perceptive can sell the stock of PC Jeweller at current levels. On Tuesday, the stock tumbled 7.6 per cent decisively breaking below a key support level of ₹550 accompanied by above average volume.

Following a medium-term uptrend, the stock registered a new high at ₹600 and encountered resistance at this level in mid-January this year. Subsequently, the stock changed direction, triggered by negative divergence in daily relative strength index and price rate of change indicator. Since then, the stock has been in a short-term downtrend.

On Tuesday, the stock conclusively breached an immediate support as well as medium-term uptrend-line. The daily RSI has entered the neutral region from the bullish zone and the weekly RSI is correcting from the overbought territory. The daily price rate of change indicator has entered the negative territory implying selling interest. The short-term outlook is bearish for the stock. It can extend the down move and reach the price targets of ₹500 and ₹490 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹532.

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

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