Pakistan State Oil (PSO)

PSO (Rs 242.74, down Rs 0.75)

Let your money works elsewhere. PSO is a dud for now.

Though the moving average setup is indicating a sulking downward trend in PSO but a close inspection of prices will reveal that the stock is showing no trend at all.

Since September 2011, the stock is moving in a trading range of 230-265 with occasional spikes above and below the range. Due to which we have seen two long term buy signals fizzling out. Since the job of any trend following system like “Trend Score” is to find the trend and when the stock shows no trend for an extended period, who is to be blamed for the loss?

Keeping that in mind, passive long only investors are advised to stay away from the stock while short term traders should follow a sell on rise strategy till moving average setup indicates a buy signal. Major support levels are Rs 230 and Rs 220. Major resistance prices are Rs 260 and Rs 270.