PICK OF THE WEEK: JSWSTEEL (NSE)
2nd December 2019
- On a Weekly chart, the stock had given a breakout of the neckline of its double bottom formation which is a bullish reversal pattern and suggests an upside movement in the counter
- On a weekly chart, after giving a brief correction from its all-time high level, the stock has halted its downside move at 213 level which is 61.80% Fibonacci Retracement of its previous upside move from 81.90 level to 427.55 level and given a close above 50% Fibonacci Retracement i.e 254 which indicates that the stock could accelerate its upward movement till 23.60% i.e. 340.
- On a Monthly chart, the stock has confirmed “Hammer Candlestick” by taking a support at 61.80% Fibonacci Retracementwhich is placed at 213 level which suggests an upside movement in the counter.
- Apart from this, on a daily chart, the stock have been trading with positive crossover of 21*50 Daily Moving Average which suggests a bull run in the counter.
- A daily momentum indicator RSI reading is at 63.59 levelwith a positive crossover which points out for a positive breath in the stock.
- Based on the above technical structure, we are expecting an upside move in the counter in a few trading sessions.
Our Recommentation is to