Bajaj Auto Buy Signal - Price begins another short term upswing

As exptected in yesterday's post, Bajaj Auto went back up again after reaching its 50 day moving average today.  The market opened gap up and ended up at 1510.95.

The volume is average, other technical analysis indicators are looking up.  This means the stock is about to make another short term upswing.  

Go long on Monday market opening.  There is no target, but put a stop at 1462.  Sell when the stochastics blue line crosses the red line, or the RSI starts falling back (preferably when RSI is falling back from above the oversold level of 70%).  The small swing should last 4-7 days, as is seen in the recent past.  Keep a watch on these indicators daily if you go long on Bajaj Auto on NSE on Monday market opening.

Bajaj Auto cruising comfortably on the 50-day moving average

Bajaj Auto stock on BSE is rising comfortably on its 50 day moving average since December 2009.

The current volume suggests that as the price is falling towards its 50 day moving average, the trading has decreased.  Ideally, this should pick up again in a day or two, on or before reaching the 50 day moving average.

A closer look at the chart shows that each swing from the 50 day moving average is about 125-250 rupees upwards.  So, as the price moves upwards again before or on touching the 50 day moving average, this stock can be bought with a target to profit between 125 and 250 rupees.

However, the current chart also shows a bunch of negative candles since the past 3 weeks.  The trend overall seems positive but the appearance of this bunch of candles is not a pretty sign. Book short term swing profits on this stock, not a good time to go "too" long.