Dabur: Head & Shoulders vs Support Line

DABUR INDIA Daily NSE Stock Chart Technical Analysis:

This may look like a complicated chart, so don't rush through the explanation.

Dabur closed at 99.35 today after opening at 100.25.  The price has been sideways for 4 days now after a big fall on 28 Oct '10.

Market Outlook:  The price will remain sideways in the next 2-3 days.  No trade signal.

In the meantime, it will find support near Rs 99 price level.  

If this breaks, the next support is at Rs 96.5.

Technical Indicators:

• The chart has formed a head and shoulders pattern.
• The short term moving average has pierced the long term moving average from above.  
• The price is quite below even its 100 day moving average.
• There is a 1-year old support trend line which has recently given support to the falling price at Rs 98.25 as seen on the chart.  This line will extend support @ Rs. 99 levels in the next 3-4 days.  The breach of this line downwards could be dangerous.
• There is another point of support around Rs 96.  If this too is broken, a downtrend is imminent.