DIVISLAB IS SHORT BELOW 623 WITH A STOP LOSS AT AROUND THE HIGH OF THE CANDLE WHICH BREAKS THE IMPORTANT SUPPORT LEVEL.
TARGET CAN BE AROUND 620-618.
ALL THREE CONDITIONS WHICH I SEE ARE IN PLAY.
VOLUME IS HIGH
RSI BELOW 30
PRICE IS NEAR SUPPORT LEVELS AND IN DOWN TREND.
Divis Laboratories' stock has been technically damaged by sudden burst of bubble. Only hunky-dory sector in Indian stock market which can stand on its foot is pharma after much publicized IT sector. Pharmaceutical companies stocks are like runaway trains, exhibiting near vertical rise on the charts. There is no way that this can continue forever. We did...
The pinbar candlesticks indicates rejection of prices on high levels and also indicates selling pressure at resistance levels. In the above chart, 1380 -1350 acting as resistance zone where we can see rejection of prices due to high selling pressure. The prices may go down to the previous 52 Week high levels to regain buyers in the momentum and also confirmed it...
It is trading in a range bound within a triangle, overall long term trend looks bearish and now it is an good opportunity to short and be with the trend.
