I have entered JK Paper after it hit above Rs 170 which was its previous high, but the stock is giving sharp and volatile moves. What to do?
HOLD JK PAPER FOR NOW, CAN GIVE A BOUNCE IN THE MEDIUM TERM
JK Paper is currently trading at Rs 155.25. Its 52-week high/low stand at Rs 193.95/Rs 97.85 made on August 21, 2018 and July 19, 2018 respectively, posting a dynamic move in just a month, where the stock breached its previous record high of Rs 169.90 reached on January 5, 2018. Meanwhile, the stock also gave downward sloping trendline breakout at Rs 143.50. After hitting its new 52-week/all-time high, the stock witnessed sharp zig-zag moves from near Rs 190 to Rs 150155 levels, which is near the 38.2% retracement of the prior rally from 52-week low to high. On the weekly time frame, we are seeing pennant pattern in the making. We suggest you to hold for now.