Ashok Leyland - Inching closer to target

Ashok Leyland seems to be inching closer to its previous high, which is just about 10% lower than its high in May. The stock has a small resistance at these levels which happened in the month of May.

• RSI is in a strong overbought position and it has remained so since the past one and a half months.
• MACD lines have widened a little in the past couple of days. So that gives some sanity to this rally.
  
• OBV chart is showing a singular good run indicating strength.

While these indicators do seem to point that there are still a few investors who are believing there is strength in the stock, I would like to see any bulk/block sales from a financial institution as a strong sell immediately. Morgan Stanley had given a target of approximately Rs. 50 earlier and that could be the range that I would closely look at to start any changes in the portfolio.