Apollo tyres is forming scalene triangle pattern which is having strong support at Rs.203 and strong resistance at Rs.224. Though the stock was able to break out Rs.224 Resistance level in last two occasions, the break out could not sustain and fall back to its earlier support level. Major price movement is not expected till it will have strong break out at...
Apollo Tyres on a weekly chart has taken support at levels of 192-193 and has bounce back giving a divergence on the RSI from a oversold region. The MACD also is showing convergence. A major part of the move has already taken place from 193 to 220.
What needs to be seen is as to how far would this upward move go with Fibonacci retracements placed at 224.5, 235...
I AM bearish on the overall tyre sector upto MONDAY 16/04 ...& certain levels AS it has given a good run already and should take a pause , correct a bit , retest levels , and then can climb high ! OVERALL THE RAW MATERIALS REQUIRED , SHOULD BE KEPT CLOSE EYES ON !!
