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Tuesday, August 19, 2014

Stock Pick of the day : GAC GROUP




Recommendation : Buy
Target : 9.50 & 10
Recommended Price : 8.90
Stop Loss: 8.50


STOCK SUMMARY:-
Major trend of is bullish on chart. It has been trading side ways range with positive biasness . It has been trading in short term correction phase during last trading session. It has give closing on positive note today after 3 days consecutive loss. We recommend the stock to buy on deep and stock is likely showed north ward movement in upcoming session. One can initiate long position in the stock at recommended level of 8.90 and can expect the targets of 9.50 & 10 in short term, while support of 50 DMA at 8.50 on hourly chart can act at stop loss.
CHART FORMATION:-
Stock was in falling wedge and it has given closing above upper resistance line and now forming ascending triangle pattern and it has been trading with support of support of 50 DMA. Appearance of golden cross showing that momentum in the stock may remain positive and likely to show northward movement on the breakout of upper resistance level.

INDICATORS:-
MACD Line is likely to cross its single line, which can bring upward momentum in the stock.
RSI is also trading above 50 mark on daily charts and showing conversion with prize trend.
On ADX positive DI Placed above negative DI and ADX is about to give breakout from 25 mark.

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