Maruti- A congestion that is waiting for a signal

The past few days of mine has been mainly spent on understanding technicals of a stock, or in other words, identifying patterns that shall give us some indication of future trends. Above is the stock of Maruti.

It has given two important indicators to the market.

• The stock has touched the resistance levels of December, which is now the support levels for the stock. This is a good sign to decide on the current downside for the stock.
  
• The stock has to break out from the box by atleast 3% to create an upside for the stock. This was because of a period of consolidation that it created in the month of February. The stocks resistance levels has been given in the fibonacci series. Also I am shall be concerned at the levels of 840 too as this was the previous support line in the middle of March.

Lets see how the stock pans out in the near future...