Hero Honda (NSE:HEROHONDA, BOM:500182), india's leading two wheeler manufacture shows too much of bearish signals in the daily and weekly chart. Fundamentally Hero honda had very good last quarter earning. On last Friday Hero honda went down by -1.25 or -21.85, the stock closed at 1719.95. During intraday the stock went all the way to 1753.90, but eventually closed near the day's low of 1713.05.
Hero Honda shows Bearish Signal in Weekly Chart
During last week Hero honda had double top near by 1949.00 mark. For last 5 days the stock continuously went down from the level of 1883.00 to 1742.00. The continuous fall has created the Bearish Engulfing in the Weekly Candlestick Chart. Hero honda breaks its 50 and 100 weeks moving average. Closing below 50 and 100 weeks moving averages can be treated as long term bearish.
In the daily chart, Hero honda has closed well below its 10, 20, 50 and 200 days moving average. 50 and 200 days moving averages are long term trend lines. Breaking below the long term trend lines are not a good sign for Hero honda. The stock also had support line which is near by 1728.00. So Hero honda may find short term support around 1730.00 mark. Breaking below the support line will lead free-fall in the stock.