What will be outlook for the stock at the start of the new calendar year ?
The one look chart – the Ichimoku chart – given below throws some interesting indicators to ponder.
The short-term Tankan Sen stands at 310.15, while the slightly broader Kinjun Sen, or the 26-day average, stands at 307.85. The Chikou Span, or the price 26-days before, is at 317.90. The indicators augur well for the stock in the short term in a sense that they signal bullishness.
But…
What does the Kumo Cloud say? The Kumo cloud is in the red, with the Senkou Span A reading at 342.05 while Senkou Span B is at 348.03.
With the price presently hovering at 328.55, which is below the cloud, it is more likely that stiff resistance will be faced above 330, more precisely at 342, for the stock in the short term.
Another technical indicator worth noting is the RSI index. The 14-day RSI indicator is hovering around 61.40 as at 31st December, very near the overbought levels.
We foresee that the upside for the stock is quite limited in the short term. The stock might face stiff resistance below 340 in all probability, and might drift lower to as low as 315 over the next few trading sessions before consolidating for further upmoves in the medium term.
Current Price : 328.55 (as at 31.122010)
Resistance #1 : 342.05
Resistance #2 : 348.00
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