Digital_Dadus

CADILAHC : 50% Fibonacci retracement

Long
NSE:CADILAHC   CADILA HEALTHCARE
After posting a fresh 52-weeks low of around 198 during March 13, 2020; CADILAHC has seen spectacular run up and in that optimism stock convincingly crossed its previous 52-weeks high of around 536 (July 14, 2017) and registered a fresh all-time high of around 670 during mid May,21. stock has seen decent profit booking from its all-time high and corrected in past few months. However, the fall got arrested near 521 which coincided with its previous all-time high of (July, 2017) along with the same the daily 200-SMA support placed near 520. If we take Fibonacci retracement of its entire move from the bottom of 406 (March 19, 2021) to the top of 670 (May 14, 2021) then 50% retracement comes near 536. The weekly 50-SMA which was pegged near 500 played a role of sheet anchor and in the previous instance the said MA also played a similar role. The weekly RSI (14) momentum indicator which travelled till 81.67 and during the course of correction it came near 44.31 and signaled “Positive Reversal” which is an indication of reversal.