Counter has broken 200 DMA convincingly, along with major support zones. These will now start acting as major resistance. With the overall bearish sentiment persisting in the market the counter could further weaken to 800 levels. The short sell should be initiated only on a pull back to ensure decent risk/reward ratio can be achieved.
Asian Paints has been falling nose down, it doesn't seem to be looking strong enough to see upside movement, also it has broken long term trend line and has been approaching long term support around 831-830 in near term, traders may enter short asian paints at cmp.
Asian paints at lower band of channel..... Stock can reverse from here in short term but the concern is increased volume with decrease in price in last 4 weeks.... If it breaks channel lower band possibility of reaching 700 is likely.... Before initiating long position, we shall wait for some sort of reversle singal......
Your view are welcome.......
It is been observed on the daily chart that the price action picks up from the support levels at 1025, now it shall move to previous support level which is now act as resistance levels.
Target: 1095
Stoploss: 1020
Risk Reward: 1:2
As seen Asian paints has broken out of the ascending rectangular channel, breaking the pattern of higher lows formation on the daily chart .
See how the stock was moving up in the channel making strong moves upward and taking small correction on the downside helping us to understand the direction and the strength of the trend, but lately buyers were not able to...
