I have bought shares of Idea at Rs 77.10, but it resisted at the same levels and turned. What do I do now? - Rajeshkumar Parmar
EXIT IDEA AT CMP
Idea is currently trading at Rs 75.55. Its 52-week high/low stand at Rs 123.75/Rs 66 made on March 20, 2017 and November 9, 2016, respectively. The stock has been trading with lower tops and lower bottoms since April 2015. Considering the daily time frame, the stock has formed a kind of head & shoulders pattern, though on the downside. The stock is trailing at the neckline level,and hence, if it breaks Rs 74.80-74 levels, it may test Rs 67-66 levels in the medium term. The volumes are low and the 14-period RSI is nearing oversold zone. Hence, we suggest you to hold and wait for a slight bounce and exit the stock below Rs 74.50-74 levels on a closing basis.