Monday, July 24, 2006

Ashok Leyland- Exposure with Caution

Ashok Leyland has entered into an interesting phase for the following

  • It has almost reached its lows after the crash of May. At 29, it would touch these levels. Even the channels indicate this as a strong probability.
  • On a fibonacci chart, the stock retraced to 38.91% before retracting again back to these levels to 31.
  • The MACD chart has reduced the divergence between the 9 day EMA and the 12-26 day EMA.
While the above two is yet to be conclusive to rate a proper 'buy' conservative investors could probably wait to see a proper turnaround in the prices wheras the risky investors can start accumulating this stock. The only caution for the safe investors is that the stock sees dramatic turnarounds of more than 8% in a day.

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