Bharat Forge likely to witness fireworks above Rs. 637

Vinayak GanguleCategories: Markets, Trendingjoin us on whatsappfollow us on googleprefered on google

Bharat Forge likely to witness fireworks above Rs. 637

In the short-term, Rs 575-570 is likely to act as a strong support zone. While the momentum is likely to been seen when the stock manages to sustain above the recent swing of Rs. 637 per share.

Bharat Forge took support around its 200-week exponential moving average in October 2018 and this coincides with the major support as defined by horizontal trend line. Considering daily time frame, the stock corrected from Rs. 637 per share and the correction halted near 61.8 per cent Fibonacci retracement level of recent up move which started on October 26 and ended on November 2. Recently, the stock was seen trading in a narrow range.

Bharat Forge is trading above its important short-term moving average i.e. 21-day exponential moving average. The 14-period of daily RSI is quoting at 50.25 it is also in sideways range with some positive bias, while in 14-period weekly RSI has given positive crossover which predicts upside momentum.

In the short-term, Rs 575-570 is likely to act as a strong support zone. While the momentum is likely to been seen when the stock manages to sustain above the recent swing of Rs. 637 per share.