Exide Industries

Investors with medium-term perspective can consider selling Exide Industries stock. Though it has been on an intermediate-term up trend from March low of Rs 34, it encountered resistance at Rs 90 and began to decline.

The stock’s trend reversal is backed by prolonged negative divergence, added with bearish engulfing candlestick pattern displayed in the weekly chart.

Moreover, we observe that volumes are dropping over the past two weeks.

The daily momentum indicator is losing its strength and weekly indicator has reached over-bought territory signalling weakness.

We believe that the stock has the potential to decline to the support level at Rs 55 in the medium-term.

We don’t rule out minor consolidation around Rs 65 while declining. Medium-term investor can sell with stop at Rs 92.

Short-term traders can sell with a target of Rs 73 and stop at Rs 85

via BL