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Ashok Leyland Stock Weekly Chart Analysis

By Kiran SadvilkarStock MarketsJan 06, 2019 14:29
in.investing.com/analysis/ashok-leyland-stock-weekly-chart-analysis-200206935
Ashok Leyland Stock Weekly Chart Analysis
By Kiran Sadvilkar   |  Jan 06, 2019 14:29
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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.


Ashok leyland weekly chart head and shoulder breakdown
Ashok leyland weekly chart head and shoulder breakdown


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

1) MACD


MACD
MACD

MACD Trending Down (Bearish)

2) RSI

RSI
RSI

RSI Trending Down (Bearish)

3) Stochastic

Stocastic
Stocastic

stochastic into oversold zone some relief rally can be expected.

DMI

DMI
DMI

Tending Up with +DI below -DI (Bearish)


Analyzing Support and Resistance

Weekly chart

Support and Resistance
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
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.

Ashok Leyland Stock Weekly Chart Analysis
 
Ashok Leyland Stock Weekly Chart Analysis

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Nandhu Ka
Nandhu Ka Jan 09, 2019 20:08
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I m in selling future broo
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Muthu Pandian
Muthu Pandian Jan 08, 2019 21:15
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only sell
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Aijaz Ahmed
Aijaz Ahmed Jan 07, 2019 18:58
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Yes, there will be some relief, but the bulls are strong
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shabbir bhaiji
shabbir bhaiji Jan 07, 2019 14:53
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on the contrary, don't you think buying can emerge from oversold zone in next few days?
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Aijaz Ahmed
Aijaz Ahmed Jan 07, 2019 14:53
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Yes, there will be some relief, but the bulls are strong
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shabbir bhaiji
shabbir bhaiji Jan 07, 2019 14:53
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on the contrary, don't you think buying can emerge from oversold zone in next few days?
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asmi prabu
asmi prabu Jan 07, 2019 13:54
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negative in put is mean the the position is squared off?
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munn singh
munn singh Jan 07, 2019 13:36
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intelligent
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