Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Hero Honda in Some Trouble

6 Sept 2010Deepak Shenoy1 min read

Quick Facts

What is "Hero Honda in Some Trouble" about?
What category is this article in?: Stocks
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 6 September 2010.
How long does this article take to read?: 1 min read

Hero Honda has been going down recently, and although I’ve sold my personal holding (disclosure: Family still holds) the story looks bleak:

Hero Honda Chart

This is slightly shady of me, because technically that’s probably not the perfect H&S formation, but hey, I’m using my creative license. The stock broke through all moving averages and is now at a breakdown zone. The 1800 mark is a pretty big resistance on the way back up, so it can be used as a target on a swing reversal, or the 20 DMA (not shown).

Fundamentally the news is that Honda is saying goodbye and there’s a suspicion the Hero group won’t be able to manage. We have to wait and see – TVS and Bajaj seemed to have done okay. Bajaj in fact has gone up 10% in the last two days. (Disclosure: I own that stock)