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Friday, December 24, 2010

Atlas Cycle: Zooming, but will it zoom through resistance?


ATLAS CYCLES Daily NSE Stock Chart Technical Analysis:

Atlas Cycles witnessed a super single-day rise on Friday with humongous trading volume.  

Open:  216   Intraday High:  256  Close & CMP: 249

Market Outlook:
  • No.1 Question in people's mind is - Whether one should get into this stock because the price is zooming upwards?
  • The answer to this question lies in how it behaves on Monday and Tuesday.
  • If the stock closes above 256, then it might make sense to take a long position.  
  • So, wait until 256+ before buying


Technical Indicators:
  • The trading volume saw a massive single day jump, so did the price.
  • Inspite of this rise, the price has remained below resistance.  In fact, it started falling the moment it hit the resistance, and closing price was below the long-term resistance line.  This is showing that resistance is quite strong.
  • So, I would wait for a day or two to see if the resistance at 256 is authoritatively breached.  Until then, wait n watch.


ATLAS CYCLES Daily NSE Stock Chart Technical Analysis

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