Bad times for Ranbaxy Labs(Technical Analysis Mumbai India trading.)

Today Nifty (13 January 2014) is almost 1% up and Ranbaxy is almost 7% down. We at Trading Kamai took a technical view of what will happen to this stock ahead. The clear indication for short term is EXIT.

There are three bad or we will say worst technical signals as explain below.

Signal No. 1 Important trendline broken confidently: - If you see the image below look at the big red candlestick breaking a 5 months significant trendline. Trendline is one of the early indicator for reversal or a downtrend. When a 5 months significant trendline is broken it’s a clear indication that the stock is having serious problem.

Signal No.2 Free falling RSI: - RSI indicates strength in a stock and you can clearly see in the below image how RSI is sliding down rigorously.  

Signal No.3 %K and %D are far apart: - Slow moving Stochastic and Fast moving stochastic when near are signs of reversals. But you can see in the below image the huge gap between stochastic confirming that this downtrend is not ending soon.

All the above three points is a clear indication EXIT EXIT and EXIT from Ranbaxy.

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