Hero Honda Motors Ltd.CMP - Rs 1902.20
Technical Outlook & Trading Strategy:-
The price of Hero Honda has been trading within broad range of Rs 1708 to Rs 1920 levels after it rallied from a low of Rs 1375 levels as on 22th Feb,2011.The key observation to be made is that the price of Hero Honda has taken shape of an Inverted head and shoulder price pattern on the daily charts.The Neckline resistance for the said pattern is placed at the Rs 1925 levels.Upside targets of Rs 2025 / Rs 2100 levels can be seen in this counter once the price breaks above the neckline resistance level mentioned above.Some of the other positive technical factors are that the price of Hero Honda has also closed above its key moving averages cluster and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 1925 levels and again on dips to Rs 1890—Rs 1910 levels for the near term upside targets of Rs 2000/ Rs 2070.A stop loss of Rs 1856.4 levels should be maintained on all long positions.
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