Ashok Leyland is something is looking very exciting for short to medium term.By seeing daily chart of Ashok Leyland, we can get an idea that it was in sideways trend(22-24) before falling badly till 12. Volumes had started to increase after breaking of that narrow range. This is very natural for any stock when it is going down.
Ashok Leyland made double bottom at level 12, and now it is climbing continuously. I have drawn a resistance trendline which shows asymmetrical triangles formation and this is to upper side. When we go to volume side, we find it is also encouraging.
A 14 days RSI is continuously strengthening and it is at 58.70 level. It is rising in uptrend which is good sign for Ashok Leyland.
A 14 days ADX is already given positive signal as the average directional index is coming down rapidly & plus directional indicator is going to cross over average directional index. We assume this is bullish signs for Ashok Leyland.
For any stock to come in bullish phase, a moving average is equally important and in Ashok Leyland it is showing signs of recovery. Ashok Leyland already has crossed short term moving average(15 days simple moving average) and it is above 50 days moving average also which is medium term that is what we think.
When Ashok Leyland goes above last trading days high(14.30) & sustain over that level, a short covering will happen as well as a fresh buying will also take place we guess.
It will be smart trading or investing to enter in Ashok Leyland above 14.30 with strict stop loss below 13.
We guess short covering & fresh buying will take Ashok Leyland at 18 level in coming few days.
See syllabus for Technical analysis training in Mumbai,India.
See syllabus for Technical analysis training in Mumbai,India.
No comments:
Post a Comment