I have suffered a huge loss in Escorts. Can I average now to reduce the losses?
- Sameer Samanta
AVOID ESCORTS FOR NOW AND ENTER ABOVE RS 705 LEVEL
Escorts is currently trading at Rs 647.20. Its 52-week high/low stand at Rs 1018.50/Rs 616 made on May 2, 2018 and September 26, 2017, respectively. The stock witnessed lower tops and slightly similar bottoms after hitting 52-week high. Thereafter, it gave a multiple point upward sloping trendline breakdown at Rs 846 and gave almost continuous downfall with rising volumes where the stock hit below its major support at Rs 645 and Rs 633 levels. The oscillators are in the oversold zone but yet to confirm the reversal. On the weekly time frame also, the stock has breached its 100-period EMA at Rs 691. We suggest you to avoid for now and enter above Rs 705.