ITC likely to fall further

ITC fell after touching a high of ₹278. It is just above a key support level of ₹269. The bias is bearish on the chart. There is an inverted cup and handle pattern formation on the daily chart. This will now serve as a continuation pattern indicating that the downtrend is still intact. This increases the possibility of the stock breaking below ₹269. Such a break can take the stock lower to ₹262-₹260 — a key long-term support level in the coming days. As being reiterated, the ₹262-₹260 region is a key long-term support which is likely to halt the current downtrend. An upward reversal from this support zone will keep the long-term uptrend, which has been in place since March 2016, intact. A bounce to ₹270 is possible in such a scenario. If ITC manages to rise past ₹270 thereafter, it will signal a trend reversal and also the beginning of a fresh leg of upmove, which may have the potential to take the stock further higher. Investors with a long-term perspective can start buying the stock at ₹263 and accumulate at ₹260.

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get




 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor