Bharat Forge

We recommend a sell in Bharat Forge from a short-term trading perspective. It is apparent from the charts of Bharat Forge that after bottoming in January at the low of Rs 69, it commenced to trend upward. The stock was on an intermediate-term uptrend till it encountered resistance at Rs 194 in early June. Triggered by the negative divergence displayed both in the daily and weekly relative strength index the stock reversed direction. Since early June, the stock has been on a short-term downtrend. In mid-June, the stock breached both the 21-day moving average as well as intermediate-term uptrend-line and continued its decline. On June 30, the stock slipped almost 5 per cent crossing below the 50-day moving average line. The daily RSI is featuring in the bearish zone and the weekly RSI is declining in the neutral region. We are bearish on the stock from a short-term perspective. We expect it to decline further until it hits our price target of Rs 130. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 151.

via BL