Technical Analysis

Sobha (₹449.5): Sell

Yoganand D BL Research Bureau | Updated on June 29, 2018 Published on June 28, 2018

Investors with a short-term perspective can sell the stock of Sobha at current levels. The stock tumbled 3.9 per cent with an above average volume on Thursday, decisively breaching a key support at ₹465. This fall has strengthened the intermediate-term downtrend that has been in place since registering a multi-year high at ₹687 in early January.

The stock encountered a key resistance at ₹550 in the months of April and May and resumed its downtrend. Since then, it has been in a short-term downtrend. The stock trades well below its 50- and 200-day moving averages. The daily relative strength index features in the bearish zone and the weekly RSI has entered the bearish zone from the neutral region.

Both the daily and weekly price rate of change indicators continue to hover in the negative terrain implying selling interest. Overall, the short-term outlook is bearish. The stock can continue to decline and hit the price targets of ₹430 and ₹422 in the coming trading sessions. Traders can sell with a stop-loss at ₹460.

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

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