Digital Equipment is a good buy as it has crossed a resistance at Rs 450. This is the resistance formed by the line projected from the peak of Rs 525 on June 10. The scrip has also established a rather longish base line at Rs 428.The daily stochastic has signalled a buy, and is at 40. It therefore indicates that there is quite some room on the upside.
The RSI, which is the indicator for long-term investment, too gives a similar picture. The signal has crossed its trigger line and is placed at 50. It has again a lot of room on the upper side.
Therefore, you have three signals here. The stochastic and RSI as well as the breaking through from a downslope resistance line.
The scrip had earlier reached a peak of Rs 541. Volumes have risen in the last three sessions -- Rs 24 crore, Rs 30 crore and 44 crore respectively, laying a good foundation.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page