The stock is trying to extend its rally even further and has given a hourly breakout, currently sustaining above it.
Buying may continue. Volumes are falling though. Watch the stock.
MRF stock after a strong vertical bull run paused and it looks like ready to resume the journey again. One can go long now or on dips wherever one is comfortable with the stop loss of 49600 for target of price range 55650 - 57500. It offers good risk to reward ratio.
NSE:MRF has been trading in a range starting October and yet again reversed from highs.
If the supply zone stands good, it should go down to the previous swing low.
Otherwise, if it breaks the rectangle upside, we might see action on the long side.
After a massive rally, price has gotten into a correction recently. What the price does at the current support line would be a key development to monitor. If there is a bounce from support, the next question is, will the price clear the resistance at the red line.
The answer to these two questions would provide clue about the near term trend for the stock. Time...
MRF is not giving any signs of reversal. One can continue holding this stock till we get the start of a corrective move.
Other tyre stocks like CEAT and Apollo Tyres as posted earlier (check the attached links) can be continued to be held (till any visible reversal signs).
As shown on charts, the weekly downward trendline has been broken with strong price action and now we might see the target 1 at 38000 and target 2 41300 with stoploss of 33500
