Ashok Leyland: Possibility of Rise

ASHOK LEYLAND Daily NSE Stock Chart Technical Analysis:

Ashok Leyland went gap down on Friday.  Close & CMP: 62.1

Market Outlook:

• There was a gap down opening and the stock closed lower as well.  But seems like there is a chance that the price will now start rising again, or atleast make a short term upward correction.
• If you have short position on this stock, ensure that you are ready for liquidation before your stop gets hit.
• Good chance to take a long position if the price indeed goes up.

Technical Indicators:

• The price went gap down on Friday with good quantity of trading.  
• The MACD shows that stock is deeply underbought.
• The gap down might denote exhaustion of the falling price and possibility of a rise.  However, this can only be confirmed in the next 2-3 trading sessions.

All Previous Posts About Ashok Leyland

ASHOK LEYLAND Daily NSE Stock Chart Technical Analysis

Ashok Leyland : Resistance @ Rs. 77

ASHOK LEYLAND Daily NSE Stock Chart Technical Analysis:


Ashok Leyland is moving within a price channel as was discussed in my 22 Oct blog post.  Also as was observed in that post, the price has continued to hug its 50 day moving average.


Today the market closed at 75.3, a fall from the opening price of 76.25.


Market Outlook:  The market close lower tomorrow.  After that, it will try and recover its 50 day moving average.


Technical Indicators:

• The blue dot shows a point where the price will have to make a final decision to break out of its Rs 70 resistance line.  This will happen in the 4th week of Nov '10.  
• If market remains above Rs. 70 for 2-3 consecutive days, then based on other positive factors, a long position can be entered into.

Ashok Leyland Stock on NSE has hugged its 50 day SMA so well since it began uptrending in early 2009, almost 2 years ago.  Keep watching the 50 day SMA for clues on trading Ashok Leyland.

A closer look at recent Ashok Leyland price chart shows the formation of a double bottom and quadruple top.

77 is proving to be strong price resistance level for the Ashok Leyland stock, with support at 71.8.

Today the price fell and closed almost near yesterday's low.  However, the volume was less than 50% of yesterday.  This means that the fall in price may not be sustained on Monday when the market opens, and the price will try to break the 77 resistance.

The stock becomes a good prospect for short term trading if it rises above 79.