GAEL HOLD GAEL WITH A STRICT STOP LOSS OF RS 100
I have bought shares of GAEL yesterday at Rs 112 as I saw a bounce. Shall I hold or exit? - Navin Parasrampuria
GAEL is currently trading at Rs 115. Its 52-week high/low stand at Rs 146.95/74.20 made on May 5, 2017 and September 30, 2016, respectively, giving one-way upside since April 2016. Considering the daily time frame, the stock has a strong resistance-turned-support at Rs 100 level and has made a rounding top after hitting all-time high levels. The stock gave a prolonged multi-year resistance breakout at Rs 105 during Feb 2017 and hence the current correction can be considered as a pullback. However, recently the stock has made a Head & Shoulders pattern with Rs 100 as a neckline, and if it is broken, it can drag it down to Rs 88 followed by Rs 78. Hence, we suggest you to hold the stock with a strict stop loss below Rs 100.