Can I enter Apollo Tyres as it has fallen considerably? - Neeraj Goel
AVOID APOLLO TYRES FOR NOW
Apollo Tyres is currently trading at Rs 243. Its 52-week high/low stand at Rs 288.30/Rs 171.60 made on August 7, 2017 and February 16, 2016, respectively. Considering the daily time frame, the stock has been making lower tops and lower bottoms after hitting all-time high levels. Recently, the stock has given a breakdown of the crucial resistance-turned-support level at Rs 245. Moreover, the breakdown somehow looks like head & shoulders pattern with neckline near Rs 245. The recovery on September 26 session acted as a breather for initiation of another fall. The volumes are low and the 14-period RSI is quoting at 36, which depicts lack of momentum on either side. Hence, we suggest you to avoid Apollo Tyres for now.