Firstsource Solution Trading Below It's 10-WMA!!

Firstsource Solution has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 83. The stock is up 261.7% from a year ago as compared to 46.2% for the Nifty500.

 

The stock has had a monster run post its breakout from a 10-week, 27% deep Cup With Handle Base.  The stock has gained 59% from the ideal buy point of INR 113 in just 21 weeks.

The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

 

Firstsource Solution stock fell -5.62% this week, undercutting its 10-week moving average. It closed -5.62% below the 10-week moving average. However, the volume for the week remained below its 10-week average.

 

The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 43.37% above the 40-week moving average.

 

The leading stocks often take support near its 10-week moving average. But if a stock closes below the line, that should be considered as an early sign of weakness. Closing below the line on a lower volume is okay, but staying there is not. At this point, you can monitor the stock carefully for signs of further weakness.