Tyre stocks have been in strong bull market for last couple of years and continue to be buy on declines. Here are two stocks that are very well positioned on charts.
Ceat: Pullback to Previous High and 100 dma
As you can see in the chart above: Ceat broke out to new High above 1000 post August 14 2015 when market went into complete turmoil. The stock has now pullback to same level which also coincides with 100 dma - making the level very attractive. A bounce from here will reaffirm the conviction and bulls might chase the stock again
Apollo Tyres: Continues to consolidate at 160
As you can see in the chart above: Apollo Tyres stock has been holding levels of 160 for more than 20 months now and every decline to 160 so far has turned out to be good 20% trading opportunity on long side. Will that script repeat again - we will wait and see
Both the above stocks are well positioned on the charts and what needs to be seen: Will Bulls offer them support again and keep the bull market intact in these stocks.
Please share your comments on what you think of stock observations, market and trading in general. Please do your own due diligence before trading or investment. Do not treat the above as any recommendation.
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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