3 interesting stocks with price formations in the long-term charts

Published October 2, 2018

Nifty 50 index on Monday closed higher at 11008.00 points. Among its 50 components, 34 stocks closed in green and 16 in red, making the advance to decline ratio positive at 2.125.
Three stocks, two of Nifty 50 and one of Nifty 500, are very close to their long-term support and resistance levels. Hence, there can be a good opportunity to either enter or exit such stocks in coming trading sessions. Let us have a look.

Titan Company Limited (TITAN.NS) Close: 809.75

Titan Company Limited broke the long term rising trend channel in May and is developing a head and shoulders formation in both the medium  and long term.
The stock has marginally broken the neckline of the formation. However, stock price is still over 800 rupees and 791 in the short term chart, which is another support area. A break and close below that level will initiate a new sell signal. Resistance is around 864 rupees. RSI, the momentum indicator, is weak which eventually shows pessimism among investors.
Investtech's outlook: Watch

Lupin Limited (LUPIN.NS) Close: 895.90

Lupin Limited has broken through the ceiling of a falling trend channel in the long term. This indicates the start of a more horizontal development. In the last couple of months there have been higher tops and higher bottoms, which can be an early sign of a change of trend to positive. There are minor hiccups in the short-term, but every higher bottom is a sign of buyers coming in at a higher price and is assured by the volume balance indicator. This is a sign of strength and supports price rise.
In June Lupin broke out of the falling trend channel and developed a double-bottom formation at the same time. Even though the target from this formation has been achieved, the formation is still positive and indicates further price movement in the same direction.
There is resistance around 940 rupees, and a close above that level can be a new buy signal.
Investtech's outlook: Watch

Radico Khaitan Limited (RADICO.NS) Close: 339.35

Radico Khaitan Limited has broken the rising trend channel in the long term. For the time being, it is difficult to say anything about the future trend direction as the stock has developed a rectangle formation. The stock is trading above its medium term support at 330 rupees. A break and close below this level may initiate a new sell signal. There is resistance around 386 in the medium term.
To look at indicators, RSI is below 30, which indicates that the momentum is weak and the stock is expected to follow the direction of the trend. We have done some research on the RSI indicator within four Nordic markets. The idea is that major price movements indicate that the investors as a group are in motion. It is thought necessary to join the early movements, as even more investors will join later and drive the price further in the same direction. More about this research can be read on our website. The stock is overall assessed as technically positive for the medium long term.
Investtech's outlook: Watch

It would be interesting to see how these stocks are going to behave when the market opens on Wednesday and in the coming days. Until then it is advisable to study the shorter and medium term charts as well to find the right opportunity for you.

The analyses are based on closing price as per October 01, 2018.