Aditya Agarwal
Way2Wealth Brokers
Vedanta has been in a downtrend since the past several months and formed a lower top lower bottom formation. Recently, the stock hit a fresh 52-week low near Rs 200 levels and rebound sharply.
However, the bounce got resist near Rs 227 levels as this level coincided with the 61.8�percent retracement of its previous daily swing move. The lower top lower bottom formation on the daily chart is intact.
The daily RSI (14) had signaled negative reversal and impact of the said pattern was seen in past few trading sessions. Hence, we recommend traders to go short in this counter in a range of Rs 218 to Rs 221 with a price target of Rs 188. A stop loss should be placed at Rs 240.
Disclaimer: The author Head of Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. First Published on Aug 3, 2018 12:07 pm
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