Ashok Leyland - Target Achieved

After a good break, I am back with the technical charts. We had some really interesting formation on the charts in the recent correction! Fibonacci did help in some of them and failed in the others. Anyways, the beauty of technical charts is to observe support and resistance movement in the stock and take intelligent decisions. Ashok Leyland was one of the stock that did a good work in the technical side.

• The stock fell from a high of Rs. 50 to Rs.38.11, a level which is at 61.8% levels. The stock bounced from these levels to 38.2% and is now at a resistance point
• The stock is below its 200 day average and is shy by about 5%
• Volumes on the Accumulation and Distribution chart is yet to give a convincing signal

Overall, if you have made the purchase of this stock in the recent fall you can start booking profits. Fresh exposure in this stock can be taken after it breaches the 44.40. Fundamentally too, this stock has some strength and would be a decent long term investment!