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Sunday, October 31, 2010

Kinetic Motors Weekly: 25-29 Oct'10: Marabozu Candlestick


Kinetic Motors Weekly Stock Chart Technical Analysis:

Kinetic Motors ended the week with a marabozu candlestick.  This shows continued selling throughout the week, and heavy profit booking by the traders and investors.

The week opened at 45 and closed at 37.65, hence losing almost 18% value in just 5 trading days.  The weekly high and low were 45.25 and 37.6.  This is very close to the opening and closing price, telling us that the all through the week, profit booking has been the only thing on everyone's mind.

Outlook for next week: The stock price will fall further.  As this week has had very low volume compared to the past 3 weeks, it can be estimated that the price will not fall at the same speed as this week.  The price is expected to find support between 33 and 37 and close the next week accordingly.


Technical Indicators: 


The price is falling from the oversold levels and into the middle zone.  This depicts continued selling and profit booking in the next week, driving prices downwards.


The volume has lowered significantly.  Hence the speed of fall should get curtailed in the next week.


The Fibonacci level of 50% (36.6) and 38.2% (33.34) should act as the support points for this week. If the price falls further below these points (which is not expected), it most probably won't go below  29.31.



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