Hero MotoCorp-5th Apr

Today's Opening - 2652
Today's High - 2664
Today's Low - 2605
Today's Closing - 2618

After five days of positive closing with good volumes, negative closing today but with volume on the lower side. The lower volume on a negative closing day is a good sign.
After being lower than the Negative Directional Index since 2nd Jan, the Positive Directional Index has managed to rise today.
The stock has been closing below the 5-day Exponential Moving Average since 14th Mar but has managed to rise above the 5-day EMA over the past four days.
The 2-day Relative Strength Index value has remained below 50 since 14th Mar. The 20-day Commodity Channel Index has been negative since 18th Mar.
After being negative since 18th Mar, the 10-day Momentum has turned positive over the past two days.
From being below -50 on 29th Mar, the 12, 26-day Moving Average Convergence Divergence has climbed up to -38 today.

Corporate Activity:
The reluctance of banks to lend, rising fuel prices, an increase in product prices by manufacturers and negative buyer sentiments were some of the reasons why not just Hero MoroCorp but the entire automotive industry has seen demand refuse to pick up in the second half (H2) of the year just ended.

Stock Movement:
In my post dated 14th Mar, I had mentioned that Hero MotoCorp seems to be creating a base at 2740-2745 and getting ready to make another attempt at overtaking the 2960 level. I had mentioned 2561 as a strong support level. However, the stock actually broke the support of 2561 and had went down till 2515 on 28th Mar. The stock is trying to bounce back with 2515 now acting as a strong support and 2740-2745 as the next resistance. Keep buying on every dip as having lost almost 12% over the past three months, the stock might just quickly recover the losses to some extent.

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