HERO HONDA (AUGUST 13, 2006)
CLOSED AT 696.65

SINCE JULY HERO HONDA WENT ON TO GET WEAKER AND WEAKER AFTER REACHING 800 LEVELS. AND IN AUGUST IT MADE LOW OF 655. NOW ON DAILY CHARTS IT FORMED PIERCING LINE WITH HIGH VOLUME ON THE DAY OF THE PATTERN CREATED. THE CLOSE OF 696.65 IS JUST CLOSER TO THE 20DMA (700) FROM HERE ON THE STOCK WILL FACE THE RESISTENCE AT 725(50DMA & 50%FIBO OF 809-637), 756 (38.2%FIBO OF 950-637) AND THE CRUCIAL RESISTENCE IS AT 788 & 793 (100DMA & 50%FIBO OF 950-637). THE MAJOR SUPPORT IS AT 690 AND 670. AND AS WITH PIERCING LINE THE MA CROSSOVER ALSO GIVEN BUY SIGNAL. AND ON WEEKLY CHARTS HAMMER HAS BEEN FORMED. OVERALL THE STOCK IS NOT STRONG. BUT LOOKS GOOD FOR HOLDING SHORT TIME.