Britannia Industries

Britannia Industries:- This stock had made 52 week high of 3467.18 in August last year, since then it has never touched that level and continuously forming lower low and lower high structure that signifies the down trend in the stock. The stock has also witnessed the death crossover [when the short term moving average (50EMA) crosses below the long term moving average(200EMA], this crossover signifies that the stock has entered into long term down trend. While in the down trend it has formed a falling channel pattern. The price is taking resistance at the upper trendline of the channel and support at the lower trendline of the channel. Few days back it has again respected the upper trendline(2742) stated falling from the trend line. The stock has also a strong resistance of 100EMA (2738) at the same level where the price is respecting the trendline. On monthly chart 20 EMA is at the around 2746, this signifies the strong resistance around 2745. Last month it had taken support at the 50 EMA on weekly chart and took a pull back to the upper trendline of the falling channel. We have also seen the bearish crossover on MACD. RSI below 50 signals the weakness in the stock. At last the broader outlook is bearish on the stock and it may continue its down trend. If it break below and close below the low (2300) of previous month it may continue its trend. Level to watch (2770 for upside and 2300 for down side).