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

Flash News Investment - - YOUR TECHNICAL PORTFOLIO GUIDE -

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.

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