Eicher motors around the resistance zone (26/02/24)

The stock has taken a nice support from the weekly 20 EMA and has closed around the previous candle close.

There is a resistance zone around 3950-3985. If this resistance is clear and price sustain above the level. There will be chance of stock touch its recent high around 4160 level.

In case there is a pullback and price action near the support zone (3765-3800) shows some positivity, a nice R:R ratio trade can be captured.

Possibility of stock dropping below the support zone is quite less and if it occures, short opportunity will be there upto the next support level.

Major support zone :- 3765-3800, 3600-3625

Positional trades in the stock can be created in this week as per the trend.

On the daily charts market is consolidating and there are chance of a break out. Next thursday being the monthly expiry march expiry options can be trades.

Both side momentum is possible in the stock. Nifty Auto is trading around the ATH.

Wait for the price action on the daily charts and enter accordingly.

Comment:

Watch out for the stock as it has crossed the resistance zone.

It is sustaining above the levels.

A bullish move can be captured in it.

Trade closed: stop reached:

Stop loss is hit on the stock.

Wait for the position again.

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