2 ‘Auto’ Stocks which are NOT a Bargain at current Price! No ratings yet.

Swing Trading

Date-27/12/2018

(1) Ashok Leyland:

After touching life time highs at 167.5 in May 2018, the stock has been losing momentum. It has entered into a Negative Price channel since then and there has been a shift in the underlying momentum.

Weekly charts of the stock display a distribution pattern which signifies off-loading of stocks by strong hands at higher levels. The stock is not a bargain at current levels as significant lower levels may be witnessed in this counter in coming weeks and months. The sentiment is quite negative and short term traders shall focus on shorting the stocks . Fresh shorts may be initiated below the immediate support levels  of 102.40/-.

Technical pattern: Negative Price Channel

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <102.40 106 97 92

(2) Tata Motors:

Tata Motors is another auto stock which is presumed to a bargain at every dip. I have been maintaining a bearish stance on this stock since January 2018 when the stock was trading 400 odd levels and the stock has fallen a good 50% since then!

The stock is still looking very weak on charts. It is an intact downtrend, trading much below the major support levels of 50, 20 , 10, EMA indicating strong selling pressure in the stock. It is also exhibiting a Descending triangle Pattern on Daily charts which signifies lack of strong buyers. The immediate support for the stock stands at 168.40 and any break below this level may again trigger a fresh panic in the counter.

Technical pattern: Bearish Engulfing

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <167.40 173 162 156

*Trading levels mentioned in the above post are valid for next 30 trading sessions

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Author: Traders' Chowk

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