SKF Bearings stock had bottomed out at Rs 552 during the last week of October. Since then, the performance has been highly impressive. From this level, within a period of less than one month, the stock touched a peak of Rs 835.In its corrective phase, the stock reacted to Rs 717 by the beginning of this month. With the latest rally to Rs 850, the stock has not only formed a higher bottom but also moved above Rs 835 which was the resistance level.
This was further supported by a decent jump volumes. The position of oscillators have also improved and 21-RSI has touched 52-week high which is a good sign. Medium term MACD is also in bullish mode.
Since the next resistance for the stock is near Rs 1000, a rally till that is not ruled out. Investors as well as traders can take long position with a stop loss of Rs 830.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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