Moser Baer

It is apparent from the charts that after encountering key resistance at Rs 115 in June 2009, the stock started to decline and has been trending downwards forming lower peaks sine then. Following a medium-term corrective up move it met with twin resistance around Rs 93 (downtrend line and significant medium-term resistance) in early January and appears to have resumed its intermediate-term downtrend. While declining the stock broke through a support at Rs 88 on January 21, with almost four per cent decline. It also breached its 21 and 5-day moving averages. The daily relative strength index (RSI) is likely to enter into the bearish zone from the neutral region and weekly RSI is slipping towards the bearish zone in the neutral region. A sell signal has been generated in the daily moving average convergence and divergence indicator. Considering that the stock has been trending down from a longer term as well as intermediate-term horizon, we are bearish on it. We expect the stock's decline to continue until it hit our price target of Rs 76 in the approaching trading sessions. Traders with short-term perspective can consider selling the stock while maintaining stop-loss at Rs 89.

via BL