I am holding shares of Mercator and wish to average it to recover losses. Can I do that at CMP?
AVOID MERCATOR FOR NOW AND ENTER ABOVE RS 23 ON CLOSING BASIS
Mercator is currently trading at Rs 20.45. Its 52-week high/low stand at Rs 49/Rs 18.18 made on November 1, 2017 and July 20, 2018 respectively, suggesting a downtrend. The stock is trading in a negative trend since April 2017. Considering the daily time frame, the stock fell consistently making lower tops and lower bottoms since January 15, 2018 up to the 52-week low. Currently, the stock is consolidating at lower levels with no signs of reversal for now. The stock is trading below its 50, 100 and 200-day EMAs. The volumes are poor and the 14-period RSI is inclined southwards. We suggest you to avoid for now and enter only above Rs 23 level on a closing basis. On the contrary, we suggest you to exit current position below the Rs 18.80 level.