Ashok Leyland - Technical Update

Ashok Leyland is entering into a nice triangle. The triangle however has mostly entered into a phase of "no clear signal" zone. The volumes are not clear for defining a clear triangle.

• The zone has entered into a nice resistance zone at this current level. This is the third time that it has reached this level.
  
• MACD is still on the positive zone. The column bars are still giving any indication or signal for a reversal of trend.
  
• RSI is still at high 60s. The last time we had correction at this level.
• Accumulation and Distribution chart is still on the upmove. The last few weeks is showing some resistance on the volume charts too.
• The stock is comfortably above the 200 and 100 day moving average.

Given the current stock levels, it is important for it to break Rs. 47. If it breaks this level, then it can break Rs. 50 else it can get back to Rs. 45-44.