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Monday, November 1, 2010

Hero Honda Falls as analyzed: Gap Down


Hero Honda Daily NSE Stock Chart Technical Analysis:

In my Friday post, I had analyzed that Hero Honda will fall on Monday and going short with a target of 1800-1820 on market open is a good idea.  

The market today opened at 1841 and fell to 1815 before closing at 1838.  

Market Outlook: The price will fall further tomorrow but the fall won't be as deep as today.  

If you did not exit the short position between 1815 and 1820 today, keep an eye on the price tomorrow and plan to exit for a short term profit.  

Depending on market tomorrow, I might hold on to a small quantity of the stock to sell even further below, if tomorrow I get confirmation about a possible fall on Wednesday.

Technical Indicators:

  • Not exactly, but its close to being a dragonfly doji today.  It is not too significant but denotes that tomorrow the slide in price will slow down.  

  • Volume has watered down which also shows the price wont crash tomorrow, will only slide down slowly.

  • 250 day moving average is a line of support, around 1778 levels.



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