Coal India price near crucial support zone of Rs 235-Rs 230
Coal India is currently trading around Rs 237. After registering its 52-week high in February 2018, the stock is consistently falling and making series of lower lows. Currently, the stock is trading near its crucial long term support zone of Rs 235-Rs 230 with oversold day technical indicators. Since last three trading sessions, the stock is falling with relatively low volumes, which predicts bears are getting exhausted.
The 14-period day RSI is quoting around 28.08 and there is positive divergence developing at the oversold zone. On the weekly time frame, the stochastic is highly oversold. Other indicators and oscillators are also in oversold zone, which indicates that the stock is likely to give a pull-back rally in a few days time.
In the coming days, the stock need to form a sizeable bullish candle near the support zone along with decent volumes. Above the crucial short term moving average, i.e. 21-day exponential moving average, the strength will be confirmed.