Apollo Tyres on a weekly chart has taken support at levels of 192-193 and has bounce back giving a divergence on the RSI from a oversold region. The MACD also is showing convergence. A major part of the move has already taken place from 193 to 220.
What needs to be seen is as to how far would this upward move go with Fibonacci retracements placed at 224.5, 235 (for move from 244.85 to 193). Interestingly 235 was the level from which it gave way and move towards 193 and so it needs to be seen as to how does it behave at those levels.
Would be taking a back seat and seeing as to how far would it go before turning around. I would appreciate if someone can put a number to the move and back it up with their explanation on the same.
i don't go into so many divergences and convergences. what i see technically a double bottom near 190 levels and a resistance range of 234-248.
fundamentally rubber prices are going down and company is increasing is production capacity.
stock is trading at way cheaper valuations compared to its peer, so i see a good upside in next 1 year for a target of 290 and a SL of 190.
thechama3
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@Nifty_Club_India, Thanks for taking time and giving your valuable response. However from a technical perspective , i have also mentioned the levels of 224-234. But what i wanted to know was how far would it go in a single swing once it hit the double bottom.
Nifty_Club_India
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@thechama3, there is no standard rule for how long single swing continue, it may depend on N numbers of factors.
so its better not to predict the swing better decide your way of trading(Intraday/Positional/Investment) and accordingly set your target.
thechama3
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@Nifty_Club_India, Cool. Thanks for sparing time and giving your inputs. Appreciate it. Have a great day.
fundamentally rubber prices are going down and company is increasing is production capacity.
stock is trading at way cheaper valuations compared to its peer, so i see a good upside in next 1 year for a target of 290 and a SL of 190.