Divis Labs corrected corrected fairly after almost a continuous rally of about 40% in say 6 months. After making a peak at 5389, it corrected nearly 30%. Now, it seems to have consolidated well and is in good shape to resume its bull run going further.
Points working in favor: 1. Fundamentals are improving pretty good 2. Double Bottom with positive RSI Divergence 3. Price action is strong on weekly chart as well
Key Resistance points/Target points: 1. 4689 2. 4769 3. 4890 4. 5016 (Fresh strong rally possible after this stage on closing basis)
Key Support level/stop loss: 4300
Comment
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After hitting Stop Loss due to Market Fall, it is settling back.
Important Update: Q3 Results were outstanding and hence, company seems to be back on growth track.