Ashok Leyland was brought to my notice by a friend who wanted to know if it was a good idea to short the stock as its approaching its all time high... let’s look at its chart and see if we can come to a conclusion… Below is what you see the Daily/Weekly/Hourly charts!
The Bearish argument;
- Approaching the all time Highs and stopped at the resistance with a DOJI…
- Negative Divergences in all the three charts…
- Overbought…
- Too far from the nearest Ma on the daily chart…reversion to mean?
The Caveat;
Only one, we have not yet got any confirmation from the price of a reversal. The weekly bar looks pretty mean and bullish…
If at all one needs to short then one can short when it breaks the low of the DOJI (approximately at 69), and the stop should be strictly above the DOJI high…the targets for starters 65…It would be prude to wait for the general market direction and be nimble!
Thanx alot.
ReplyDelete