Trading idea based upon Fibonacci extension level, stock is Piramal Healthcare (PIRHEALTH). On daily chart we have seen the extension level acting as resistance. Also a sell crossover was seen on stochastic indicator around 80 zone, stock was already overbought. As on chart 138.2% Fibonacci extension level, 528 must act as resistance in short term. If you look at futures open interest data for June series, you will notice that there was long unwinding as stock was going up but open interest was down, it can be a trade to go short. Look at the below chart:
Trading call on Piramal Healthcare: I will recommend to go short on PIRHEALTH Future around 528-530 for positional target as 502 and 497. Stop loss level should be 537, also keep in mind this is positional trade and trader needs to hold position for 3 to 4 trading sessions. Article published on 23 June 2012.
This short term trading idea was shared to me by: Omkar kulkarni, one of my student of Technical Analysis course. If you want to learn how to do such analysis, then call me on +91-9970777789.