UK stock pick of the day : Smith & Nephew Plc

UK stocks rebounded on Thursday, heading for their highest close in over six weeks, as markets shrugged off disappointing economic data in China and were buoyed by speculation that policymakers will take action to avert a global slowdown.The FTSE 100 was up 0.3% at 6,634 by midday - it has not closed above this level since 29 September when it settled at 6,646.6.RSI is managing to sustain above 50 level with positive bias, For upcoming session if index manages to consolidate above 6600 level crossing of 6650 level it can show upside movement till 6900 with the support of 6400.

Stock of the Day

RECOMMENDATION BUY

TARGET 1185

The primary trend of Smith & Nephew Plc is bullish and it's consolidating near to resistance level crossing of the resistance can show northward journey. Stock is trading with positive bias and facing resistance from the trend line, crossing of it can test the level of 1185. One can initiate long position in the stock above the level of 1075 with the stop loss of 1035 for the target of 1185.

CHART FORMATION:-

Stock is showing consolidation and sustain at higher level with positive bias.

It's 50 DMA has given the break out above it's 200 DMA which is indicating strength in the stock.

Technical Chart

INDICATORS:-

RSI is trading near to level of 70and showing consolidation, Breaching of the resistance level can manage to test further high.

In ADX, Positive DI is placed above negative which is indicating strength for buying.

Macd & Signal line is about to give break out above Zero level line which is indicating strength in the stock.