day trading guide: Day Trading Guide: 2 stock recommendations for Monday
However, a sustained trade above 17,920 over the coming week will extend the ongoing uptrend to 18,080 levels. Additionally, for the coming week traders should be careful of a negative divergence which accumulates in the price of the RSI relative to the price of the VIX and which has crossed the 16 level as these are the signs of an intermediate formation at the top.
M&M | Buy at CMP of Rs 779
Target: Rs 820
Stop the loss: Rs 760
The stock is about to emerge from a phase of close consolidation, suggesting a buildup of optimism. In addition, prices increase on good volumes. The RSI technical indicator rallied after taking support at the 40 level, suggesting strength in the stock.
Ambuja Cement Futures | Sell ââ@CMP for Rs | Sell ââ@CMP of Rs 412
Target: Rs 390
Stop the loss: Rs 425
The stock is on the verge of collapsing from trendline support suggesting an accumulation of weakness. Additionally, it turned south from previous resistance of Rs 425 and a bearish cross between key moving averages over shorter time frames confirming the bearish trend. RSI is also heading for bear territory.
(The author, Aditya Agarwala is Senior Technical Analyst, YES Securities. Opinions are his)