Ashok Leyland Technical Analysis Report (4th Dec)

From last 5 months Ashok Leyland taking the support of 105, it looks like 105 is one of the major support for Ashok Layland. And when the market breaks these kinds of major support then god knows where it will stop after that.

I am already in sell position in Ashok Leyland and will wait for Rs 75  to cover my short position, and I am expecting Ashok Leyland to hit Rs 75 mark in Jan-mar next year. This article is not biased in my position, I will show you all bearish pattern which is there in Ashok Leyland.

Major Support at Rs 105. WHY?

• Medium term support line
• Short term support line

Both lines indicating major support at 105, for joining support we have to focus chart of long-term. 

How to draw suport line= adjust your time frame, take one point and extend your line to find other point, once you get other point and then extend more to get the third point, all these points are support points.

Two Major Bearish Pattern 

1. Head & Shoulder
2. Descending Triangle

Head and Shoulder is always a game changer for a share price after formation, not a single hare is able to rally for the next 1-2 year. So better to take your decision after reading all these information. The bigger the formation is the higher the potential of decline.

Descending Triangle again a bearish pattern, just wait for breakdown then it will show you real game of technicals, Descending Triangle is not powerful as compare to H&S, but it is also important when 2-3 more bearish pattern is there.

Both pattern showing Target of 70-80, here we have to wait for confirmation, means a close below 104 on weekly charts will confirm our trade, and we will get our target in next 3-4 months. Here we want a  weekly closing of one candlestick below 104. 

I know many people have Ashok Leyland in their portfolio,  Read all information carefully and then take your decision. Share this to all your friends.