JK TYRES

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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.

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