MRF - Stock overdue for correction

NikhilGhodke Updated   
MRF has raced up around 60% for the past four months without any meaningful correction.
Daily chart is giving indications of exhaustion on the part of bulls.

With a reversal in Nifty on cards, it seems quite likely that MRF will follow suit.

What indicators are saying:
Double top - Price pattern has formed a double top near the 54000 level.
Bollinger bands - CMP is near to upper bound and red candle indicates reversal to mean position.

Decision - On further indication, look for SHORT position.

Immediate Fibonacci retracement level - 49500
If 47000 is broken, Target 2: 45500

Stop: 55500-56000
Trade active:
MRF nearly kissed the first target level. and its been only one day since we went short. If Nifty bounces tomorrow and upcoming days, MRF may too - but will likely retest top channel line.
Overall, it seems we are in for a corrective wave 4 in MRF.
Trade active:
Target 1 achieved.

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