Today’s pick is WHIRLPOOL [stockquote]WHIRLPOOL[/stockquote]. The stock started has been on an uptrend since the beginning of the year and experienced the 52 weeks high of Rs. 290 in December. However currently it is undergoing a double top formation, a few more close below Rs. 265 levels will confirm the same. In the last three months, the stock has moved +1% vs. +6% of the Nifty’s.
Oscillators RSI and CMO are hovering close to the over-sold territory but are not suggesting any direction. The stock is below the lower Bollinger band, which is bullish for the stock.
The MACD line and signal line are moving away from each other and unable to suggest any short-term direction. Long-term and short-term GMMA lines are moving very close to each other and are unable to point towards any direction for the scrip.
WHIRLPOOL’s average correlation with the Nifty is Zero. The scrip will be moving independent of the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
WHIRLPOOL has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term Sell. A longer term call could be taken if the stock is able to penetrate through the Rs. 290 resistance.
