I covered Cipla in a post titled - Cipla: The stock that moves in circles on June 18.
Cipla has created a clear resistance at 425. Now, one of these days/weeks – Cipla will move out of the slumber, and the best indication would be a close above 425. If in next few days, Cipa closes above 425-430 – then expect a start of fresh move in the stock. The big question: When will Cipla move out of long sleep it is in?
Well, Cipla made that move above 425 on June 27 2014 and see what happened after that -
Cipla Daily Chart
Cipla as of 02 Sep is trading at 557. The above chart is as of Sep 01 2014.
Cipla broke past 425 on daily chart and then consolidated for 1.5 months before making a strong breakout move to 529 in last few weeks. Well, this was a welcome move for Cipla stockholders which came after long time post its breakout above 360 in August 2012.
Cipla has just started the move and it seems like good days, weeks and months are ahead for Cipla stock.
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