Today's Opening - 241
Today's High - 241
Today's Low - 234
Today's Closing - 239
I am writing on this stock for the first time ever.
Six days of continuous negative closing, with volumes today 70% higher than the past 30 days average. This is a worrisome trend.
The stock price has been below the 5-day Exponential Moving Average (EMA) broadly since mid-Sep last year and after a brief breakout above the 5-day EMA in April, it's been again trailing the 5-day EMA since 24th April.
The 12, 26-day Moving Average Convergence Divergence has been negative since 2nd May and it's dropped below -5 since 21st May.
The 14-day Negative Directional Index got stronger than the Positive Directional Index since 2nd May and the gap has opened up considerably over the past three days.
Again, the 20-day Commodity Channel Index too has been negative since 2nd May and has further dropped below -100 over the past two sessions.
The 2-day Relative Strength Index had remained below 30 since 31st May and has now gone below 25 over the past two days.
If it was the iron ore mining shutdown in Goa since March this year, the copper smelter shutdown in Thootukudi in Tamil Nadu is the latest negative news for Vedanta.
The 12, 26-day Moving Average Convergence Divergence has been negative since 2nd May and it's dropped below -5 since 21st May.
The 14-day Negative Directional Index got stronger than the Positive Directional Index since 2nd May and the gap has opened up considerably over the past three days.
Again, the 20-day Commodity Channel Index too has been negative since 2nd May and has further dropped below -100 over the past two sessions.
The 2-day Relative Strength Index had remained below 30 since 31st May and has now gone below 25 over the past two days.
If it was the iron ore mining shutdown in Goa since March this year, the copper smelter shutdown in Thootukudi in Tamil Nadu is the latest negative news for Vedanta.
After losing more than 15% over the past one month, Vedanta has broken the support level of 237 today and might further move towards 230. However, there might be a short pullback from the current level. Do not mistake it for a trend reversal. Wait for the downward trend to resume and keep buying on dips with a long-term view.
If you find this analysis useful, you might want to read through my latest posts on Lupin, Tata Motors and Bharti Airtel.
If you find this analysis useful, you might want to read through my latest posts on Lupin, Tata Motors and Bharti Airtel.
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