Sharing an interesting Chart here. As you can see the stock had a massive drop of nearly 40 percent from its high and it was pushed below the 200 DMA. Then we saw some strength coming in and it started consolidating for the last two months and it was moving in a range. Now we can see that the buy waves have started to dominate. Also, the volume remained low during the consolidation or the accumulation phase. Now it has started to increase now. The stock is at the edge of the accumulation zone and we can see the relative strength, absolute strength and money flow are positive. However, the stock has not started trending up, it has to break above the consolidation zone. Now it has moved past the short-term moving averages and the 200 DMA as well. The stock is very interestingly poised. If it breaks out of this consolidation zone, then it could see 2400 levels. However, as we all know this may not be the right time given the current circumstances and also we are expecting the results next week. In fact, Q3 results were quite robust and the same robust results could continue pushing the stock up. But we need to wait for the current situation to resolve and also it may be a better idea to wait till the results are out.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.