Hindalco: A pivot high under formation

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Hindalco is one of the outperformer stock as compared to other metal stocks such as Jindal Steel, Tata Steel, Hind- Zinc etc. The reason for such outperformance is, it made an accumulation pattern at the level from 86-94 and gave a bullish break which took prices till 113 levels made on 16th May 2013.

The level of 113 is a very crucial  where its previous pivot is placed along with 50% retracement of the previous down move (137-86) and also 200 (SMA) is placed at this level. Now for prices to move in a positive direction it need to take out 113 decisively.

With the help of Price and Time grid, we can observe that prices are currently quoting near the intersection of the grid which is suppose to be a crucial resistance. Please understand the grid helps us to identify the important pivots which can be under formation or its in place. The overall view for Hindalco is positive as the stock can move till 120-121 levels over short term. A dip in prices can be utilised as a buying opportunity. The immediate support for this stock comes to around 106 levels.

Momentum Indicator RSI has also relieved from the overbought zone. MACD continues to be in a buy mode. MFI is positive from past one month. ADX is placed at 34 which suggests that its in a matured stage.


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