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Friday, February 11, 2011

Spice Jet: Showing Support at 44


SPICE JET Daily NSE Stock Chart Technical Analysis:

Spice Jet investors finally found some relief as the stock price seemed to hit bottom and started moving upwards.

Close & CMP: 46.4

Market Outlook:
  • The price seems to be rising after a steep fall.  The recent fall was due to the allegation of Maran's involvement in a scam (not related to the airline industry though).
  • The worst seems to be over for SpiceJet's stock, but nothing can be said yet.  I would still wait for allegations to subside to take any long term view.  
  • Current support is (short below) 44 and resistance is (buy above) 49.50 with a short term exit.
  • Day trader: Can be bought around 46-47.  Sell when it reaches 49.50 (if the price is moving upwards fast and goes above 49.50, you might hold on longer)
Technical Indicators: 
The price was falling consistently and formed a doji candlestick at its support @ 44 and then returned upwards with good level of market interest in the stock and strong liquidation of shorts by the bears.  Overall a recovery sign, but not whether this recovery will be long-lived.



SPICE JET Daily NSE Stock Chart Technical Analysis

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