Aban Offshore: Technical Analysis (9th June 2009)

Aban Offshore took resistance at Rs.1300 levels, which is the price during its IPO and has good consolidation. The same can give good support at Rs.980 and Rs.800 levels. I think distribution of the aban is finished and it got good accumulation at the lower levels as more and more investors are showing interest in this stock. It moved up very fast due to more demand and now it is in overbought state, ADX(5) on weekly is almost 70. That could be one of the reasons the price came down very fast as investors started booking profits.

So, what next? I think we may see re-accumulation in between present levels to 980 or even up to 800 levels. Wait and watch time.

Below is the weekly chart of aban in logerthmic scale.

Due to swift moves in this stock, price didn’t make significant retracements. To take support or resistances I am using trend lines on hourly charts plus fibo, below is the chart for the same. Some what complicated, but following the lines on only right most part of the chart smplifies to understand better.