What you see below are the Daily and the Hourly chart of Welcorp. The stock witnessed some visicious selling due to bad results.
If you notice the chart hourly to your right you would see that after the initial selloff at the opening, the stock just meandered sideways for the rest of the day hinting at some kind of exhaustion. Since the stock had fallen sharply and extended to far away from its nearest 20 period EMA, the sideways consolidation enabled the EMA to drift lower trying to catch up with the price.
And if you take a look at the Daily chart on the left you would see the same story. Price has drifted too far away from the key EMA'S. Infact there is a confluence of 20/50/200 EMA'S at the 100 odd levels. With the markets poised to open up positively it needs to be seen whether WELCORP is game for a dead cat back bounce or not . In all probability it is, as they say , a rising tide lifts all boats, even the leaking and squeaking types.
SO let us see how this one behaves today !
EDIT at market close today:
If you notice the chart hourly to your right you would see that after the initial selloff at the opening, the stock just meandered sideways for the rest of the day hinting at some kind of exhaustion. Since the stock had fallen sharply and extended to far away from its nearest 20 period EMA, the sideways consolidation enabled the EMA to drift lower trying to catch up with the price.
And if you take a look at the Daily chart on the left you would see the same story. Price has drifted too far away from the key EMA'S. Infact there is a confluence of 20/50/200 EMA'S at the 100 odd levels. With the markets poised to open up positively it needs to be seen whether WELCORP is game for a dead cat back bounce or not . In all probability it is, as they say , a rising tide lifts all boats, even the leaking and squeaking types.
SO let us see how this one behaves today !
EDIT at market close today:
No comments:
Post a Comment