Stock of the Day – Aban Offshore

A lot of theory talks about how one should look at multiple time frames before initiating a trade. Lets consider the Daily and Weekly chart of Aban and see whether looking at 2 charts makes it easy to take a call on the stock.

Below herewith is the Weekly chart;

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The weekly chart shows that the stock is pretty much below the major resistance levels we saw being created in early 2012. While the 200 average on the weekly doesn’t have any reasoning, personal observation has been that it can have an impact many a time (200 MA on weekly = 1000 MA on daily).

Now, lets move to the daily chart

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This chart shows a pretty bright picture with the stock after the first burst of momentum has seen continuation of the trend. The stock is currently just below the resistance level of 485 (which was tested today) and a move above it could theoretically move the stock to the next major resistance level (of 560 as seen on the weekly charts)

 

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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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