Arvind Mills - A Stutter Before the Next Move
Arvind Mills after a good run up is facing resistance around 100-102 levels & on wednesday there was a sell-off to the magnitude of 5%.
Arvind Ltd - 1 Year Daily Chart
A view at the chart would show you how steep the climb was & by doing so it has formed a Rising Wedge sort of pattern. As it has broken down of the steep trendline the targets for it now would be around 85-80 levels. This would get invalidated with a move above 102 levels on closing basis.
The stock is still in an uptrend & shorting if done should be done with utmost care & strict stop-loss levels.
Indicators:
MACD has just turned bearish.
RSI started to come down from the levels of 85.
Fundamentally with Dollar strengthening against the Rupee, would work well for Export oriented companies & their revenues & profits might show a big jump.
Bottom Line: Seeing the Candlestick pattern & multiple resistances around 100-102 levels. The stock is most likely to come down to levels of 85.
Market Wisdom: A stock that has rallied a lot, usually takes a breather before making its next move.
Happy Trading / Investing. Would be glad to receive comments from all on the views expressed.
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