Monday, 14 April 2014

AMBUJA CEMENTS – A stock in strong buying momentum

 



The stock of Ambuja Cements is in long term up trend. It has been in long term corrective phase from May 2012 to August 2013. After the low of 146.75 made on 28 August 2013, it started the formation of impulsive Wave (i) and after the formation of Wave (ii) in a zigzag correction the price chart started to form Wave (iii) which is in making from February 14, 2014. 

Wave (iii) which is in formation has already extended more than Wave (i) which itself suggests the possibility of Wave (iii). Wave (iii) generally extends 1.618 of Wave(i) in stocks. But still if we see Wave (iii) extending 1.382 of Wave (i) we derives the price of 230 and if we assumes it to extend 1.618 of Wave (i), then the price target comes near 244 which is our short term target for the stock.
Currently, the stock is trading at its 52-week highs and this buying momentum is likely to continue in the days to come. The stock can be bought near the current levels or in small dips near 213-215 with the stop losses below 200 and expect the targets of 230 and 244. 




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