Positional Buy – buy SHREE GLOBAL {BSE CODE – 512463} above 50 {on closing basis only} sl 30 target 75-110-200
holding period 1-2 years
technical study – just have a look at the chart of shree global price fall from 400 level to 25 level in just 2 years time. and in past 3-4 month it has stopped its downward movement and done consolidation in this range.
from November 2011 it was started to trade below 100 MA and 200 MA levels and stayed below this level till current time, recently it able to cross 100 MA level in a month of march 2013, and just recently on 4th july 2013 it able to cross its 200 MA level, so at present its trading well above its 200 MA and 100 MA levels now.
overall chart also indicating that it has also broken the symmetric triangle and very well moved out at 43-45 range. it also able to move above horizontal support line in chart where it has taken a support and face resistance also which is at 40-43 range level.
we can also see that its a case of “BEARISH POSITIVE DIVERGENCE” on chart where price able to make the tops but RSI is not able to make any top yet. as rsi is in overbought zone at present so we can think about some consolidation at this level also.
As per the candlestick pattern its has also created a bullish engulfing pattern on 1/7/2013.
also spotted three white solders bar pattern from 3rd to 5th july 2013.
as far as our study concern stock is very well moving with technical on chart, but as its a low volume script, we can assume that there are manipulated activities may exit in stocks. so as per our over all study we can say that if stock able to give close above desire level then only enter into the positional buying call, because there only it may give us a confirmation of buy signal, and according to its movements in coming future we may keep technical check in this stock.