GAIL - Technical Analysis


#1

Momentum Reversal

Momentum is a simple well-known trading strategy that buys stocks with the best returns over the past three to 12 months and sells stocks with the worst returns over the same horizon. Many tweaks to the basic momentum strategy have been published in academic papers.

Momentum combined with a volatility effect is one such useful trick as research shows that momentum returns could be enhanced by using the most volatile stocks. An additional advantage of this approach is that it works very well within large-cap stocks (it is well-known that momentum works better in a small-cap universe; therefore, any trick which works within large caps is helpful).

Source

There is no change in the trend this is a contrary pick. If the stock has fallen the last few weeks and even faster last few days. There is a high probability of reversal.

The stock is near the weekly demand zone. This creates another opportunity for a pullback.

Name Value Action
RSI(14) 59.867 Buy
STOCH(9,6) 80.634 Overbought
STOCHRSI(14) 55.831 Buy
MACD(12,26) 1.48 Buy
ADX(14) 29.414 Neutral
Williams %R -25.352 Buy
CCI(14) 61.7715 Buy
ATR(14) 1.5571 Less Volatility
Highs/Lows(14) 0.2929 Buy
Ultimate Oscillator 64.505 Buy
ROC 0.856 Buy
Bull/Bear Power(13) 1.356 Buy