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| Asian Paints has been rising since beginning of 2009 within a price channel |
ASIAN PAINTS Daily NSE Stock Chart Technical Analysis:
Asian Paints is moving within a price channel since early 2009. The stock price hit its resistance on 23 Dec'10 and is now falling.
Close & CMP: 2776
Sentiment: Bearish
Market Outlook:
- The sudden single day fall is due to the big fall in NIFTY on the same day, otherwise the fall would have been smaller.
- The price has found support at 2756. But there is likelihood that the price will fall further to find support at 2698.
- Closing below the diagonal support line could mean that the stock is losing its bull trend and might fall or turn sideways.
Technical Indicators:
- There are long term lines of support and resistance, forming a price channel for Asian Paints' bull run since early 2009.
- Currently, the price has retraced to its 50% Fibonacci levels and found support there.
- The 61.8% Fibonacci retracement crosses the support at 2698, making this number an important support point.
- The stock is priced quite high and is up by about 450% in 20 months. Not a very good time to take a long-term position in Asian Paints, I doubt if it will continue rising at this pace in 2011, or will be able to rise much at all.
ASIAN PAINTS Daily NSE Stock Chart Technical Analysis
