Today’s pick is GOLDBEES [stockquote]GOLDBEES[/stockquote]. The ETF started the year with an uptrend to reach 52 weeks high of Rs. 3,100 levels. This level proved to be a resistance, and the ETF saw a formation of double top by the end of November. Since then the ETF is in a continuous down-trend. In the last three months, the ETF has moved -7% vs. +5% of the Nifty’s.
Oscillator RSI and CMO have been trading close to the over-sold territory since long, and are not giving any directional bias. The ETF is trading in the lower end of a very compact Bollinger band giving no directional bias. Short-term technical just saw 9×4 bearish cross-over.
The MACD line and signal line are moving parallel to each other, unable to give any outlook. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.
GOLDBEES’s average correlation with the Nifty is -0.02 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
GOLDBEES has a historical volatility in the range of 0.1 to 0.4. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term sell. For the long-term we could take a call based on the ETF’s behavior around Rs.2,700 support levels.
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