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The stock, with a market capitalization of over Rs 91,000 crore, hit a 52-week high of Rs 2,586 on July 5, 2022, resulting in a breakout above the neckline of the Rs 2,521 range.
Experts suggest that the stock is trading near overbought territory, hence some consolidation cannot be ruled out, but momentum remains strong and short-term traders can look at the stock with a target of Rs 2,700 Huh.
The Relative Strength Index or RSI is placed at 67.7. RSI below 30 is considered oversold and above 70 is considered overbought. MACD is above its center and signal line, which is a bullish indicator.
For the last six months,
Consolidated broadly in the 300-point range between Rs 2,200 and Rs 2,500. When viewed from a line chart perspective, this consolidation appears as an ascending triangle pattern.
The pattern is formed from range-bound price action, indicating a balance of power between the bulls and the bears.
agenciesSiemens started the week on an upbeat note with a gain of nearly 5 per cent on Monday. The advance has also been accompanied by substantial intraday volume – the highest since the second week of May.
Experts suggest that this indicates that buying interest in the stock is returning after weak price action.
On the price action front, the stock is trading above its 50-day, 100-day and 200-day moving averages, indicating short-term and medium-term strength.
“The +DMI line has crossed above the -DMI line. Also, the +DMI line is crossing the trend line connecting the peaks of December 2021, April 2022 and May 2022. This indicates bullishness,” said Abhishek Chinchalkar , CMT charterholder and head of education, FYERS, said.
“From a relative strength perspective, Siemens is outperforming Nifty. While the index is trading near its 52-week low, Siemens is trading near its 52-week/all-time high. As we write The ratio of Siemens to Nifty is at a 6-year high,” he said.
All these indicate a bullish trend in the stock. Chinchalkar suggests, “Accordingly, one can look for buying opportunities on a pullback towards the Rs 2,480 to Rs 2,475 zone, while maintaining a stop loss below Rs 2,350 for a possible 8-10 per cent rise to Rs 2,700.” Might be possible.”
He said the time frame for this scene is around 6-8 weeks.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times.)
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