Gabriel
CMP 176.85
Well the stock doubled in beteween May to November (6-7 months). After such a fast run , stocks either go into consolidation (time-correction ) or price- correction .
That’s the way to shake off the weak hands as well as to pause and check whether the promised expectations from the company bear any fruit .
This run of last few months happened on the basis of expectations, now those expectations should come true as well as overall market-sentiments should be positive.
In short term ,we see it to remain range-bound or price can correct. In short term ,it can go down near 170 ( 20 WMA and lower end of the channel) . If it breaches this level too ,then it can fall near 155.
Big bearish as well as longer upper-wix candles (in blue circle) don’t give a confidence of upside in short term. They signal that huge supply is coming near 200 levels.
Would reveiw it in future if the situation changes.
As far as Autos and auto-aniclliary sector is concerned, it had a good run in 2022 . Post -covid pent-up demand helped in setiments. Now most of these are either correcting or are in a consolidation mode (very few have a good structure for short-term upside move) .
Let’s see if there is some trigger for this sector in coming budget and that can change chart-structure.
Disclaimer :This post is just for learning few methods of price-patterns. Views are personal. No buy/sell recommendations. These are probability study methods and chances of success/failure depend upon various factors.
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