NMDC still mining deep or start expedition towards the sky...
NMDC Ltd - A Navaratna Public Sector Enterprise under Ministry of Steel. Whatever the performance of the company, whatever the dividend given by the company, the stock price is declining since last couple of years or so.
The stock hit high of 196 on 6th June, 2014. After that it enters in consolidation and remain mainly between 155 to 185 till November 2014. But in midst of November, it breaks the level of 155 on closing basis. Since then it was running in downtrend. Off-course the down trend moves in waves. But the major price range was bound in a slanting channel. The channel continued till 24th August, 2015 and then again it enters in consolidation. The low recorded in this consolidation phase is of 89.10 on 29th September, 2015. This low is also a 52 week low till date.
Now if the stock is not breaking 89.10 on closing basis in next few days, and the consolidation continues in the same region of 105.5, then the stock price will surely breaking the upper trend line of the channel. If so, then the upper trend line, which was acting as resistance line, will become support line.
The resistance line was broken once in October, 2015 but the price could not sustain above the resistance line for long and again it enter in downtrend.
Now, if the resistance line ie being broken and price is sustaining above this resistance line, then we can say that the up trend of the stock may start. We will have to wait for price sustaining above resistance line after breaking it and giving a good buy signal...
Happy Trading...Trend is Friend...
- Anand Singh Gaur
- Sunil Kothari