ITC India - 4 Reasons to be a bit nervous right now at 445Although I am still bullish on ITC, there are some warning signs that anyone long / anticipating needs to be looking for and this may save you a lot of money if the stock does reverse from a test of 450+ - volumes have dried up recently indicating that there is not much supply at 450 (which is good)
Stretched on the monthly / weekly momentum - although still positive, it is definitely on its last legs (unlike new breakouts like Indigo, Bharti etc)
The base is being built - but might still need 1-2 weeks (previous bases took 2 months)
Volatility is compressed and this is a positive. It touched 452 in this consolidation and also made a tail down to 430 - which is very normal
If the relative strength goes down (compared to nifty) or if it cuts 440 on volumes, then cut off the trade.
Bottomline - Stay long and hope for a clearance of 455 very soon - on good volumes that too. Otherwise be ready to cut this loose if it reverses sharply from here on volumes.
