Tuesday 4 June 2013

ACC technically looking weak

ACC has formed a Bearish pattern formation. Today has given below break down below diamond top. Also break below 1200 would confirm with higher volumes more weakness in the counter with another bearish pattern.

Fig 1. ACC Daily Chart 


                                                               Fig 2. ACC Daily chart 


                                                                Fig 3. ACC Daily chart 

The chart structure of the entity showing bearish pattern formation as displayed above in Fig 1 & 2 daily charts. Further the short term and long term trend lines have been breached as shown in Fig 3.

Fibonacci ratios applied on long term charts shows it has even retraced below 50%, which further can head towards 61.8% and more as shown in the chart below.



                                                    ACC Daily Fibonacci Chart 

Thus, one can short the stock around any bounce up to 1230 odd levels with stop loss above 1250. The eventual target for the counter would be 1 _ _ _ and 1_ _ _. So the stock can under perform in near term. It is advisable for long traders to exit the counter only positions can be built decisive break above 1250.

So trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.

Raju V Angadi
 Equity Research Analyst


 To know more about probable counts contact us back on rvangadi@googlemail.com 


Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.


No comments:

Post a Comment