ASHOKLEY trade ideas
ASHOK LEYLAND - WEAK STRUCTURE#ASHOKLEYLAND
CMP 102.9
Bias - Bearish SUBJECT TO BREAKDOWN OF 100 LEVELS.
Weekly chart shows a perfect H & S pattern.
Price at the neckline region with higher probability of breakdown.
Breakdown of 100 possibly could be disaster for the stock.
Pivot based ema oscillator is at a new 2 year low.
Next major support seen in the region of 80-82. Camarilla S4 at 88.
View negated if price crosses above 112.
Ashok Leyland Beginning of downtrend.Unless we get some great news here, this stock is gonna go in a long downtrend if we break the neckline/support at 105.5.
1) Head and Shoulder signalling trend reversal from bullish to bearish.
2) Descending triangle signalling bearish pattern.
My previous idea had a target of 116-118, which we might not reach. I am going to close my long trades here and will open positions only if we break out of the triangle.
I am seeing a good R/R hereBounced off the current levels four times before making it a strong support, in a short term downtrend forming a descending triangle. Could see narrow range in the coming few days before it breaks out of the triangle. I would place my buy here and next buy at 100. A huge upside potential, a break upward from the triangle could start a new rally and we could see 20-25% gains, or more. The risk to the downside is low. The volume is extremely good. Traded in a narrow range with a huge volume today, so that's a good amount of accumulation
You could place your buy here or wait for the break out from the triangle. I have opened long positions at 105.8
Ashokley, ConsolidationThere is a consolidation forming above the breakout and now even if there is a breakout happening, it may quite difficult to cross the level of 171-2 level. As said in the previous post, if 162 is broken on the downside, price can correct till 152-3. In short, it is possible that upside is capped for the near term.