Hot Trading Pick and Stock Strategy for June 11th, 2010: Buy Idea Cellular
June 10, 2010 by admin
Filed under Analyst's Corner, General
Hot Trading Pick and Stock Strategy for June 11th, 2010: Buy Idea Cellular
On the Daily Charts, IDEA is now bottoming out. Yesterday it crossed its 20-Days EMA (Exponential Moving Average) of 54.44 with a good spurt in volume.
Prices made a White Candlestick too, to prove the strength lying within. Stock’s 50-Days SMA (Simple Moving Average) is quoting at 59.86. In the coming days, if stock crosses this level, it will be very strong and will touch new highs.
The 14-Days RSI (Relative Strength Index) has given a BUY Signal on the intraday charts and is quoting at 49.59 on the Daily Charts (RSI below 50 indicates weakness or confirms the Selling signal).
The Positive Directional Index (25.84) has crossed the Negative Directional Index (21.63), ADX (Average Directional Index) has gained strength on intraday charts and is quoting at 15.39 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to accumulate IDEA only above 55.50 for the Target of 59.50, with the Stop Loss of 54. The stock can still be accumulated above the given levels for long term (6-12 months period) for higher targets.
Contributed by Sonal Natani MS(Finance), ICFAI, Hyderabad.

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