Gammon - Second Target Reached

Gammon has reached its 50% Fibonacci series. The stock closed at Rs.431, bang on at 50% level. At the current position, the technicals are still favouring the sellers than the buyers.

• MACD has just turned to a 'SELL' with the line breaking the signal line.
• The volume chart on Accumulation Distribution chart shows that selling is still largely there on the stock.
  

The targets for the stock would be at Rs.397, if it still falls further. However, for investors currently in the stock, do not sell till it breaks Rs. 418-420 as the last few days, the volumes are actually receding by the day. For potential investors, the stock is at a range where there is a resistance at Rs. 460. But to take a comfortable position, any exposure after Rs.452 would be an ideal one. But given the upper resistance at Rs. 460, this makes the investment an unviable one. Hence, lets wait till it breaks Rs. 470 to take any position on the stock.