After a second failed attempt to breakout from a previous highs of Rs 226.25 (Touched in mid of May 2017), Indiacem has now corrected resulting into break down from a support joining from 105.10(December 2016), 153(March 2017) and Midpoint levels of 179 (May 2017).
This week, the stock also broke the recent lows of on the back of healthy volumes, which indicates that selling was intense and the stock looks set to continue the next leg of its downtrend.
However, the breakdown from 179 on the lower side would trigger “Double Top” pattern, one should wait for one bar closing below the above said levels to trade this pattern.
Other technical indicators like 5 has crossed below 20 , pattern was formed till previous closing,14-Day is sliding downwards, indicator is trending down.
We believe the stock has the potential to move lower in the coming weeks as it attempts to test its previous intermediate lows of 179. We therefore recommend a Sell at CMP and selling more on any rises. Our entry levels, along with stop loss and targets have been mentioned above.