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Wednesday, May 19, 1999

Morepen Labs -- Time to book profit 

Deepak Singh Tanwar  
Morepen Lab had a dream run. Within a short period of two months, the stock moved up from Rs 128 to Rs 610, showing an impressive jump of 375 per cent. The rally was accompanied by substantial jump in volumes.

However, if one were to go by the position of the oscillators, the uptrend seems to be losing its steam. The 21-RSI has formed a negative divergence, showing a lower top. This is nothing but a hint of falling momentum.

Although the stock is still in a major uptrend, past performance might not be repeated. In fact, the RSI oscillator hints at a correction. As such, for those who entered at lower levels, the time seems to have arrived to book profits. Re-entry can be considered later. The stock has a support at Rs 450.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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