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Monday, August 1, 2011

ABG Shipyard Ltd. CMP—Rs 388.40

Technical Outlook & Trading Strategy:-

On the daily chart the share price of ABG Shipyard is sustaining above its cluster of moving averages for past few sessions. On the weekly chart the stock has registered a breakout from a symmetrical triangle pattern.

It should be noted that symmetrical triangle breakout signify consolidation and suggest price advances. The momentum indicators are also in a bullish zone.

We recommend traders to buy 50% now and again in the range of Rs 382 – Rs 385 levels with a stop loss placed below Rs 375.8 levels for targets of Rs 395 – Rs 405 levels, expected to be achieved in coming few Sessions.

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