One positive and one to stay away from

Published January 9, 2019

Getting straight to the analysis today: one positive stock and one to stay away from.

Coromandel Internation (COROMANDEL.NS) Close: 453.20

Coromandel International has broken up through the falling trend channel in the medium term. The stock price is making higher tops and bottoms which may indicate the starting of a new uptrend.

The stock has given a buy signal from an inverted head and shoulders formation both in the medium and long term. Target from the formation is around 505 rupees, while there is support around 436-430 and further at 400 rupees.

Positive volume balance and rising RSI curve support the rising price. The stock is overall assessed as technically positive for the short to medium term.

Recommendation one to six months: Positive

Tata Steel Limited (TATASTEEL.NS) Close: 491.35

Tata Steel Limited has been inside a falling trend channel since last year in all time frames. This signals increasing pessimism among investors and indicates further decline for Tata Steel Limited. The stock has recently fallen below the support at 500 rupees and initiated a new sell signal. Further downside in TataSteel is suggested.

The longer term chart has support at 360 and resistance around 540 rupees.

The volume balance indicator is negative which indicates higher volume with falling price and falling volume with price correction. This weakens the stock further.

Recommendation one to six months: Negative

The analyses are based on closing price as per January 8, 2019. Maintaining proper stop loss is always recommended.