Ashok Leyland (NS:ASOK) weekly chart Analysis.
Auto stocks have seen sharp fall in price past week due to poor sales number and Ashok leyland's stock was amongst one of them which was hit hard.
Lets have a look at the weekly chart of Ashok leyland stock and try to analyse what went wrong using Technical Analysis.
As we can clearly see the stock was trading below 9, 13, 26, 50, 150 EMA's on weekly basis taking support of 200 EMA but past trading week bears became so aggresive that the price broke major support level of 200 EMA and the stock price closed decisively below 200 EMA. Stock price closing below 200 EMA is not a good sign for bulls.
Weekly chart indicates a Head and Shoulder breakdown which was confirmed by the sell off that was seen in the past week.
As we all know market has a simple rule for Support & Resistance. Support once broken becomes Resistance so as per this rule 200 EMA can act as a strong resistance on the upside until bulls make a strong comeback to push the prices higher. Bollinger Band is also challenged on the downside which shows high volatilty.
Analysing the Indicators
MACD Trending Down (Bearish)
stochastic into oversold zone some relief rally can be expected.
Tending Up with +DI below -DI (Bearish)
Analyzing Support and Resistance
The weekly chart has been following the descending trending as we can expect some support to be seen at previous breakout levels marked as S1,S2 and S2 while resistance can be expected at current/previous breakdown levels.
Analyzing the option chain.
Option chain suggests that the call writers were very active in the past week as more new contracts were added to the call side.Also we can see some put unwinding happening on the 95 and 100 strike price.
The overall sentiments looks bearish but we should have a close watch on how price unfolds in the future.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.