Tuesday, November 17, 2009

EDUCOMP CMP Rs 780 - The stock looks bearish

  • EDUCOMP has multiple support near Rs.680-690 but the stock has clearly failed to participate in the recent rally for the last 4-5 sessions. 
  • The improving outlook for the IT sector has seen the CNX IT index soar while EDUCOMP has distinctly under-performed, in spite of a 1:5 stock-split and good revenue growth of 92% this quarter. 
  • If the stock sustains below Rs.690 it would be a major breakdown and a further decline of 15-20% may be seen where the stock may grossly underperform the broader indices. Next support around Rs 540-560 may be tested.
  • The stock shows a huge bearish Head & Shoulders formation where breakdown happens below Rs 690. It will be a fatal breakdown once that happens as the stock would move below all major moving averages.


Anonymous said...

It was very interesting for me to read that post. Thank author for it. I like such topics and anything connected to them. I would like to read more soon.

Anonymous said...

Hey Tanmay,

Do you think its a genuine H&S.

Dont u think its shape is wierd.

I dont think its H&S.