Maruti Readying for a big moveThere is a strong resistance at 7800-8000. Maruti has has struggled since a year 2018 to cross it. From all time high resistance is just 20% down. on the lower end 6500 is the support year. Twice it broke down on lower time frames but failed to do so on monthly chart. In first breakdown price returned in 7800-6500 band in next candle & in march owing to severity of fall it took more candles return in the mentioned band, there was no follow up selling. This 1300 Rs band on monthly time frame shows the stock is just taking a breather after continuous up-move since multiyear breakout around 1850 in year 2014. stock almost became 5x hence a breather is expected
Now after spending 3 years in consolidation, it looks attractive to accumulate for short term trading & long-term investment. Vven the stop loss is at 6000, just 1000 rs down from CMP 7300. not even 20%, which makes maruti a good pick for long-term.
As per Fibonacci retracements stock is consolidating in 78.6% to 61.8% .
78.6% & 61.8% are most nearest to the top
Shallower the retracement healthier is the uptrend.
