Since crude oil prices have plunged recently, the tyre industry looks promising. So, can I enter JK Tyre now?
- Abhishek Benkar
ENTER JK TYRE ABOVE RS 120 ON A CLOSING BASIS
JK Tyre is currently trading at Rs 102.75. Its 52-week high/low stand at Rs 192.95/Rs 87.70 made on February 12, 2018 and October 9, 2018, respectively. After hitting 52-week high, the stock witnessed a correction and it marked a sequence of lower top, lower bottom on the higher time frame. However, the correction halted in the close proximity of 61.8 per cent retracement of its entire upmove from September 2013 to February 2018. Currently, on the weekly time scale, the stock is facing some resistance near its multi-touch point downward sloping trendline and, on the daily time frame, the stock is trading above its long term moving average, i.e. 200-day EMA. We would recommend buying this stock only if the stock witnesses breakout from the multi-touch downward sloping trendline.