ALMARAI (Last: SAR 60.50, down SAR 0.25)
The stock is getting weaker by the day and is on the verge
on entering into a long term downtrend. On 23/06/12 at SAR 67.50 the stock confirmed
short term downtrend as the price fell below 2 weeks moving average with RSI
below 50. At SAR 64.50 on 01/07/12, ALMARAI gave a medium term sell signal as 2
weeks moving average went below 12 weeks moving average.
The stock has lost 10% of its value since 23/6/12 and is
looking a bit oversold. We may see modest gains in the near term but gains will
be limited to SAR 62-63 levels due to deteriorating trending profile.
Trading strategy:
Passive long term investors are advised to stay away from the stock till some
clarity emerges on the trending profile. However, aggressive short term traders
should take advantage of the current oversold conditions and start buying the
stock on weakness with a stop loss at SAR 59.00. Target resistance zone is at
SAR 62-63 level.
No comments:
Post a Comment