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Monday, January 3, 2011

Thangamayil Jewellery: Negative Signals


THANGAMAYIL JEWELLERY Weekly NSE Stock Chart Technical Analysis:
(This is a weekly chart, so each bar/candlestick represents 1 week of activity)

Thangamayil Jewellery is a 2010 IPO which started trading on 19th February 2010.  It enjoyed a bullish run for the first 6 months.  Since then, for the last 5 months, it has been moving sideways.

Market Outlook:
  • The price seems to have stagnated, and unless it breaks above 190, there is no chance it will revive its bull run.  For now, there is a high chance that this price will start moving downwards soon.
  • The levels of support are 159 and 149 respectively.
  • Don't enter this stock right now, and get ready to sell your existing Thangamayil if the price continues downwards.
  • If Price Falling below 159 --> exit any long positions.  
  • If Price Falling below 149--> Take short positions and enjoy the bear run.

Technical Indicators:
  • A pattern resembling the head and shoulders has emerged.  It cant be exactly called HnS pattern but has a close resemblance.
  • The price has fallen below its long term diagonal support line today



THANGAMAYIL JEWELLERY Weekly NSE Stock Chart Technical Analysis

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