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Technical Tip: Buy Apollo Tyre at CMP placing stop-loss at 161.50

Way2wealth | 11 Jan, 2017  | Follow Author | Add to my Favourites 
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After confirming its breakout from a Down ward sloping trend line joining from its all-time high of 244 (February, 2015); stock has seen decent run-up towards 235. Subsequently, we witnessed a sharp decline as a result stock erased all its gains. Looking at the daily chart, the recent low of 173.30 (candle low of November 24, 2016) was precisely coincided with the previous Top and after testing this level stock rebound sharply towards 203 hence we are seeing a Top Bottom support on daily chart (please find the horizontal trend line). Also the recent low (i.e. 173.30) was precisely coincided with the 61.8% Fibonacci retracement joining from the bottom of around 138 to 235 comes near the same. Looking at the weekly chart, the recent low of 138 also coincided with the weekly 89-EMA. Due to sharp correction from 235, the daily RSI (14) has formed a Positive Reversal formation which is a bullish pattern. Recently, the daily RSI (14) managed to hold 40 levels and started heading northward. Combining the above technical evidence, we believe the recent correction is a good opportunity to build long position and expect reversal in this counter from current level hence traders are advised to buy this stock at current level of 192 with an upside price target of 260. Strict stop loss should be placed at 161.50.

Daily Candlestick Chart

Investment Strategy: 

  • Buy Apollo Tyre at cmp 192, Target 260 & SL 161.50.
  • Return to risk ratio: 1:2.23.


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261.40 -11.35
261.30 -11.45
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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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