Why?: Because Idea Telecom stock is at 100 week ma
Here's the Weekly Chart
Idea Telecom broke out above 100 in last week of December 2012. I remember I covered it back then as Breakout stock to keep an eye on. Idea Telecom rallied to 120 and then pulled back to 100 again by April 2013. And then the stock took support at Breakout point and rallied 80% when overall market was looking ugly. ..Contd..
But then just when overall market was turning around in October 2013 - Idea stock started losing ground. The stock witnessed profit booking and it started slipping. It came off even below 2008 HIGHS of 150 which ideally should have acted as support. The weakness below 150 was a clear sign that bulls were losing grip on the stock.
On Daily Chart - Idea has become rangebound
The Level of 150 now has become the resistance. Also, on downside - the level of 130 has acted as support for last few months. Interestingly, on weekly chart - this level coincides with 100 week ma.
What this means?:
That if Idea stock has any chance of revival - this is the level from where it should bounce. For investors who like Idea - the level of 130 is good place to enter with closing stop loss below 124. In Short term, it seems Idea Telecom will bounce from 130 to 150..but if it fails, then Idea Telecom will go back to 100 again. Let us see what happens.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers