VIBHA : If 6.90 holds another rebound to 8 will be possible.
July 21, 2011 Leave a comment
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.