Traders and investors often use
moving average crossovers to buy and sale stocks or financial securities in the
stock market. There are two types of moving averages in the financial market.
Simple moving average (SMA) and exponential moving average (EMA). We use EMA
crossover to make decisions for buying and selling of stocks.
We generally take 9 EMA as a short
term moving average and 20 EMA as a long term moving average. When the short
term moving average (9 EMA) surpasses over long term moving average (20 EMA),
then we can say crossover happens, such as golden crossover (50 EMA crosses
over 200EMA).
Here we have found three stocks with
potential upward trend for the upcoming days. These stocks are likely to be
focused on due to moving average crossover happen and RSI, the momentum
indicator also near or at 60 level which is a good sign.
At the same time, we will look at
RSI to be at 60 or above 60.That is the right time to enter into the stock for
buying opportunity.
Below are the Details of the Stocks:
1. Indian Railway Catering & Tourism Corporation Limited (IRCTC):
IRCTC closed at
Rs. 1045.60 on 8th July, 2024.This stock was in an uptrend after making a low
of Rs. 847 on 4th June, 2024.
On 8th July, Monday
the stock closed above the previous day's candle. There is an EMA crossover
happens, we can see from the above daily chart of IRCTC. RSI is 59.79 which is
also nearly at 60 line.
2. Gujrat Mineral Development Corporation Ltd. (GMDC Ltd.):
GMDC Ltd. Has given a
closing of Rs. 421.85 on 8th July, 2024.This made a low of Rs. 325 level. And
from that level it has continued its upward trend intact.
We can see from the
above chart that there was a moving average crossover occurred in the stock on
4th July, and on 8th July this stock gave a good move about 6%.RSI is above
60,which is a good sign for a potential upward move.
3. Ipca Laboratories Ltd.:
Ipcalab after making a low around
Rs.1050 level on 28th June, 2024 made a bullish engulfing pattern and
continued its upward journey till now. The stock closed at Rs.1188.15 on 8th
July.
From the above daily chart of Ipcalab, we can see that the 9 EMA(Red line) is just trying to cross over its 20 EMA (Green line) . RSI at around 54 level trying to touch 60 line. If this crossover happens and RSI can shift its range above 60 we can see a good upside move on the stock.
Traders and investors are adviced to maintain a
proper stop loss in the system as per their risk appetite and keep a perfect
profit taking system as per individuals trade management.
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
