Analysis: GOLDBEES

Today’s pick is GOLDBEES. [stockquote]GOLDBEES[/stockquote]. The ETF has been in a constant uptrend since the start of this year. However, since touching the 52 weeks high around 3100 levels, the stock corrected to 2950 levels and saw a pullback from the pre-existing trend-line. The 52 week high is currently behaving as a resistance level. In the last three months, the ETF is down -0.5% against 11% rise of Nifty’s.


Oscillators RSI and CMO are at currently at 47 and -16 are closing in towards the over-sold territory.

MACD line has just cut signal line in a bearish manner, suggesting a near term bear run for the stock.

The long-term and short-term GMMA lines are running very close to each other not suggesting any particular direction for the ETF.

Short-term technical just saw a 9X4 bearish cross over for the ETF.  


GOLDBEES’s average correlation of -0.014 with the Nifty is negative. The ETF will not replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]


GOLDBEES has a historical volatility in the range of 0.6 to 1.2. The scrip’s volatility is currently in the middle of the range.

Looking at these technicals the ETF is short-term hold. A pennant seems to be forming that makes us nervous suggesting a long-term buy. However, it seems to have held its trend-line over the last few trading days. At the risk of sounding too nuanced, we suggest a medium-term buy. We’ll turn long term buyers of the yellow metal once we see a bullish breakout of the pennant. 

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