Stock of the Day – Crompton Greaves / Siemens

Is Crompton finally out  of the woods. A company that had at one point of time shown great promise had plummeted lower on account of a continuous stream of bad results as well as questions on corporate governance. But over the last few months, the stock has been steadily rising and is now breaking multiple resistances as it surges ahead.

As can be seen on the charts, the next major resistance is nearly at 165 but once that is crossed, one can expect a stronger rise as the next major resistance is quite some distance away (nearly 40% above at 235).

Another stock belonging to the same sector and which too is showing promise is Siemens. On the weekly, we can see that the stock has broken above a slanted Inverse head and shoulder neckline and should augur well for the stock in the short to medium term. Target for Inverse H&S formation comes to 940 which is a major resistance level owing to it also being the top of 2011.