But each time price makes it to the , there will be fewer buyers waiting because, at one point, all buyers who were interested in buying have executed their trades.
Looking at the chart, the idea in cyan rebounding lines shows that price bounced less high with each “touch” and eventually it may break the .
R3 = 875
R2 = 765
R1 = 700
P = 665
S1 = 650
S2 = 625
S3 = 590
For current month expiry, I am expecting it to be range bound between 680-720. I suggest 'Call Ratio Back Spread' if you are an options trader.
Medium/Long Term Investors: Fundamentals are very good and the stock can easily give returns of 10-20% in 3 to 6 months. Buy on dips. The stock is currently in but any news may reverse the pattern.
Disclosure: I am invested and on the stock based on its fundamentals, technicals are pretty weak in the short term. I am following the strategy of buy on dips with 1:2:6 pattern. That if bought 1 stock today, will buy 2 stocks below/above 665/700 and 6 stocks below/above 625/765. The stock is worth averaging up and down depending on which direction it picks in future.