Ashok Leyland - Broken Channel!

Ashok Leyland has broken a channel that was created in the past week. The stock broke the channel on strong volumes.

• The Accumulation Distribution chart has shown a reversal from the fall that the stock has seen over the past few days
  
• The stock has just beaten the segment where there could be some consolidation. This is the area where the rectangle has been marked during its previous rally
• MACD is showing some strength and looks like it could give a 'buy' signal sometime soon

The stock has an upside at two levels to break before it hit Rs. 50. One will be at 46.7 and the other at 47.5 and if it breaks both these levels then we could see it hitting Rs. 50. These are levels that would give an investor an approximate return of 10% in the coming weeks. However, one must look at this channel break on the pessimistic view too considering the stock markets are making new highs with fewer stocks. I would still keep the previous levels as stop losses - Rs. 42 levels.