After a strong up move in the last 6-7 months of 2017 from | 667 to | 1218, the share price of Centurytex entered a secondary corrective phase during May 2017 to work off the extremely overbought conditions developed after the strong rally.
The price wise correction halted precisely at the major of | 1038-1042 being the confluence of following technical observation:
The Horizontal support joining tops of October 2016 (1038.70 ) and March 2017 (1042).
The upward sloping gaining multiple supports during upward journey for the stock.
Presently, stock has staged an upside breakout from a “Double Bottom “ with rising volumes, giving a confirmed close above 1096 ( mid-point ) of the said pattern..
pattern was formed by the stock as on 15/06/2017 and Three outside up pattern was formed as on last trading session.
Among oscillators, the daily 14 period’s is currently placed above centre line, As Per , stock is in strong trend with readings of 36, line is crossed over signal line today.
Keeping in mind the above technical evidences we recommend a Buy as per levels mentioned above for this particular stock.