LUPIN : Offering second chance..?

In the last week Lupin started moving up since it was extremely oversold. Some analysts said it could reach 1250 levels.
News has also been favoring it since some drugs got approval from USFDA.

It started rising & yesterday it touched an intraday high of 1170. Today the high was 1166.
However the price closed in red today.

I think there was some profit booking as it was clear from the resistance trend line that it had resistance at 1155 (The resistance line was earlier touched 3 times, so it has significance). After checking the derivatives data it is clear that there was some long unwinding around 150-160 levels.

Ok, that's the past. What can we expect ahead.?

I think that Lupin is giving a second chance to traders that had earlier missed the train.
The divergence's in the RSI (see green lines on chart) signal that 1192 should have been taken out by now, but it is not.
Even after altering the RSI from 14 periods to between 18 & 22 periods, the divergence is still pretty clear on a daily time frame.

A one or two day consolidation may offer a second chance.
If you can time your entry smartly, one can enter between 1120 & 1140.
Keep a tight stop at 1117 & go long for 1192.
Its a good risk / reward ratio.

Smart money is booking profits now, but will catch up the wagon once it moves/closes above 155.

Lets see what we get to see..
Happy Trading...!!

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