The stock took a beating of 17% odd yesterday on USFDA warning letter for its 2 plants which contribute over 50% of sales to US and around 20% revenue in total...
Will the stock fall even more or Is the worst over...???
Lets try to see what the chart is saying...
- The chart is falling from the highs of 2129 made in Oct 2015
- trading in a for over 2 years now...
- channel support at 800 odd levels currently
- history suggest further support at 850 odd levels
Looking from Fibonacci point of view the stock is at important 76.4% FIb retracement levels
Given the set up risk::reward ratio looks favorable to accumulate from medium to long term perspective...
Momentum might come on sustaining above 920 odd levels
Target 1154 / 1340 over medium to long term
Take care & safe investing...!!!
The stock has entered the support zone of 800-850
One may consider to accumulate
Take care & safe trading...!!!
By mid December 2017 it gave early signals of buyers returning in the stock by holding above 860 odd levels and now in Jan 2018 we are reaping the benefits...
The stock may face some resistance here... Momentum will comeback once it crosses 920-940 zone ...
For those who missed out any dips towards 880 can be a good entry opportunity as the stock has seen good consolidation & base formation at lower levels.
Take care & happy trading...!!!