ITC failed to extend its up move last week. The stock recorded a high of ₹350.8 on Thursday and reversed sharply to close 2.4 per cent lower for the week.
A fall to test the 21-week moving average support at ₹330 looks likely in the initial part of this week. Whether ITC breaks below ₹330 or reverses higher from there will decide the ensuing trend for the stock. A reversal from ₹330 will keep the stock range-bound between ₹330 and ₹350 for some time.
Short-term traders can go long if the stock reverses higher from ₹330 with a tight stop-loss at ₹328 and for the target of ₹340.
But if the stock breaks below ₹330, the outlook will turn bearish. Such a break can take it lower to the next support level of ₹326. Further break below ₹326 will increase the danger of a fall to ₹320.
No comments:
Post a Comment