Stock of the Day – West Coast Paper

On a dull day, West Coast Paper mills took off as a sprinter would do on the athletic field gaining the maximum 20% allowed for the day. On the daily charts, we can see that the stock has moved above the 200 day EMA with today’s move which was accompanied by huge delivery volumes as well.

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While on the surface it appears to be a strong breakout, one needs to be wary due to the multiple number of resistances it has to cross before it reaches un-chartered territory. In fact, the stock is available even after accounting for today’s rise at the same price as it was available in Mid 2006, talk about value destruction that the stock has seen for a long term Buy & Hope investor [ assuming that he did not turn a trader who sold high and bought it back low as many investors claim to do 🙂 ] 

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About Prashanth

Have been a full time participant in the stock markets since 1996. Run a Yahoo Group where focus is exclusively on discussions of the Indian Markets using Technical Analysis as the tool (groups.yahoo.com/group/technical-investor)
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