VIBHA : If 6.90 holds another rebound to 8 will be possible.

The stock has consolidated for 2 months now after the big run-up from 5.35 to 8.50 during late May / early June, and could well bounce to 8 or so once again as long as 6.90 holds firm. A weekly close or even daily close below 6.90 on heavy selling would be very bad news however, and force stop activation, so entry near here needs to come with a reasonably tight SL in our view.

Strong resistance from about 7.4-7.5, and if taken out a swift move to 8 or so looks possible. Look for daily vols to increase above 3m shares for a break out or break down to be meaningful.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: