Daily chart has formed higher highs and higher lows pattern and after 20 January 2010, Nifty has given first time close above 20 days EMA and entered in short term uptrend. On candlestick front Daily chart has formed “White Opening Marubozu” bullish candlestick pattern, although reliability of pattern is low. Daily momentum indicators are in bullish zone. Over all technical scenario favors bull but sustainability at this level with volume is must for upmove.
Sesa goa (387)
Stock has formed “Rising Three Method” a bullish continuation Candlestick pattern with a volume upbeat. Also Stock is well trading above its 20DEMA. Moreover western indicators like RSI, MACDh and stochastic has also shown positivity in the stock which supports continuation of trend in coming days. Looking at all above implications stock can be bought above RS.388 with a Stop Loss of RS.380 and Target of Rs. 402
Stock has made “Ladder Bottom “bullish reversal pattern and reliability of the pattern is medium. Daily RSI and Stochastic has given positive cross over to signal line. 3 days EMA has given positive cut to 8 days EMA. Volume is in increasing trend since last three days. Looking at all above technical evidence trader with moderate risk appetite can consider Buy above Rs.156 with tight stop loss of Rs.152 for a Target of Rs.163-165.