Sobha Developers - SELL

We recommend a sell in Sobha Developers from a short-term perspective. It is clearly evident from the charts of Sobha Developers that it has been on a long-term downtrend from its January peak of Rs 1,041, forming lower peaks and lower bottoms. The stock was in a consolidating phase between late August and early September. While consolidating sideways, the stock shaped a symmetrical triangle pattern (continuation pattern). On September 15, the stock tumbled breaking through the triangle pattern. The stock resumed its downtrend and continues to fall. On Monday (September 22), the stock declined 6 per cent, with high volume. The stock is trading well below its 21- and 50-day moving averages. The daily and weekly relative strength indices are featuring in the bearish zone. Moreover, the moving average convergence and divergence is slipping downward in the negative territory. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to continue further until it hits our price target of Rs 180 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 212.

via BL