Pullback stocks of The day: SAIL and CAMS make a striking bounce back

Steel Authority of India and Computer Age Management Services Polymers have good price-volume support. The stock price is presently trading at Rs 107 and Rs 2,709, respectively, after bouncing back from key support levels. The RSI, ADX, and other technical analysis metrics are in sync with the rebound.

Steel Authority of India Ltd

Daily chart of Steel Authority of India Ltd 

Steel Authority of India’s stock is trading with a strong bullish candle on a daily chart, which is bouncing from the support, which was a strong resistance for a basing pattern once. Today, the daily volume is also crossing its daily average volume.

On Thursday, the stock witnessed a flat opening at Rs 103, touched its day low to Rs 102, and traded higher to jump to its day high of Rs 108. The stock has crashed with markets for the last two days, as it was a necessary correction after a bull run.

The Steel Authority of India has formed a base chart pattern, and the price broke out from the level of Rs 103 on December 14. With its breakout, it started a new bullish trend. The stock price has bounced today from the same breakout level and may retrace from here to touch its 52-week high again. The short-term EMA of the 20-day period is just below the day low, suggesting that this bounce back is valid and may benefit bulls in the coming trading sessions.

The relative strength index dropped below level 65, anticipating V-shape recovery signs, suggesting the stock price may consolidate for a while. The ADX indicator line is trading near the 40 level, which shows strong directional strength and volatility.

During any sharp recovery moves, the major resistance level to watch for is 52 weeks high. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages, indicating a sustained pullback from these levels.

The stock has given returns of 32.99% in 12 months.

Steel Authority of India Ltd. engages in the manufacture and sale of steel and steel products.

Computer Age Management Services Ltd

Daily chart of Computer Age Management Services Ltd  

Computer Age Management Services’ stock is trading with a strong green candle, indicating a bounce back from a crucial level.

The stock witnessed a gap-down opening at Rs 2,642, touched its day low of Rs 2,618, and jumped its day high of Rs 2,718. The stock has been in a downtrend for the last 13 trading sessions.

Computer Age Management Services showed a broadening wedge breakout a few sessions ago, and now the stock price has come down to the same level, suggesting a pullback with some evidence to start the bullish trend. The stock price is likely to bounce back from here as the 50-day EMA is also acting as support in conjunction with an important support level.

The relative strength index is at a level of 51, suggesting the stock price may not pick up momentum but will show slow moves.

During any recovery moves, the major resistance level to watch for is its prior high. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages.

The stock has given impressive returns of 23.24% in a year.

Computer Age Management Services Ltd. engages in the provision of financial and mutual fund transfer services.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.