UPDATE 1- 13TH OCTOBER 2020
Follow up on BHEL:
The stock moved below stated support- which is slightly frustrating, and also raises the question if we are dealing with a support zone instead of a level? this calls for a fresh look on the stock (red highlights).
A positive development on the hourly charts- RSI positive divergence. Price is forming lower-lows (downward sloping line on price, yellow highlight) but RSI is making higher-lows (upward sloping line on RSI, yellow highlight).
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PUBLISHED ON: 6th OCTOBER 2020
Hello Readers!
BHEL’s hourly chart is indicating strength. It started correcting from 42.5- a strong resistance zone , and has fallen nearly 31% in the last 1.5 months.
The consolidation (sideways movement) in the price observed over the last few days is backed by a display of strength in the momentum indicator- RSI.
The relative strength indicator (RSI) is telling us 'Look ! relative to the past few days price is doing better' by simply by keeping its nose above 30 as highlighted in yellow. Every time RSI was below 30, BHEL's price kept slipping lower and lower as highlighted in red. This indicates a stop to the price slide.
BHEL is offering a great risk-reward-ratio at this level.
Current price - 29.30
Stoploss - 28.90 (-1.5%)
Targets - 34.8 (19%) , 42 (40%)
Thanks for reading.
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