Can I enter Cera at the current level?
AVOID CERA SANITARY NOW, ENTER ABOVE RS 2990 LEVEL
Cera is currently trading at Rs 2900. Its 52-week high/low stand at Rs 3225/Rs 1853.15 made on April 26, 2017 and November 22, 2016, respectively. Considering the daily time frame, the stock failed to break its downward sloping trendline level at Rs 2990 on a closing basis. Moreover, the fall from the resistance is supported by rising volumes and negative crossover of the 14-period RSI. The stock forms a kind of triangular pattern which has a break down at Rs 2800. Hence, if stock falls below Rs 2800-2700, it may witness further sharp fall. However, considering the weekly time frame, the said levels act as a pullback of the 'cup and handle' breakout at Rs 2725. Hence, we suggest you to avoid for now, but surely enter at Rs 2990 level.