Ashok Leyland Price Action – Be Cautious With The Breakout

Ashok Leyland Price Action – Be Cautious With The Breakout

Trading Coach  | Mar 13, 2018 11:47

Ashok Leyland (NS:ASOK) stock prices had excellent run since the beginning of 2017. In early 2017, share prices were trading at 75, fast forward to march 2018, market price is 147. That’s almost 96% gain in less than one and half years! Despite government budget and other black swan events in recent months, Share prices didn’t witness any major volatility or correction. Is there any strong Insider buying interest in the stock?

Ashok Leyland Price action on Daily Chart

Ashok Leyland Price action - Upside breakout in daily chart

Typically in a Bull market, investors and market participants can bid the share prices of certain stocks to unreasonable levels just based on perception of what they hear from media and company directors. Restructuring measures such as vehicle scrappage policy to trigger growth opportunity (not yet implemented in full extent!) and bolstering vision of launching one product every six months to capture new export markets have created a positive euphoria among investors. Whether it would happen or not is something we should wait and watch in coming quarters.

In the daily chart of Ashok Leyland, we see an upside breakout. Price action traders should watch this breakout; it may give some trading opportunities in coming weeks. One important thing is to keep in mind, it’s an upside breakout in a stock which is already trading at highs. Be cautious with the breakout, it’s better to wait for some retracement to check whether the breakout is really a valid one or not. Keep an eye on price action and trade accordingly.

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Trading Coach

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Kapil Baldawa
Kapil Baldawa

Entering bubble zone now. Some news definitely coming else no reason to rise from beyond 148-150. Pretty sure a big sell off coming either really soon  ... (Read More)

Mar 15, 2018 06:36 GMT· Reply
Mukul Gupta
Mukul Gupta

Stock has definitely witnessed few corrections in the range of 10% or so in short spans. Don't you consider that as volatility? However certainly agree this has moved quite a bit after breaking 133 levels.  ... (Read More)

Mar 13, 2018 21:37 GMT· Reply
Gaurav Jain
Gaurav Jain

Any chance of falling this stock till 135-138 zone guys, please please help me here.. As i am holding the 135 Put Option, total  10 Lot @ 1.2 rupees, and having huge huge loss. Currently trading @0.55-0.65 range. Should i wait for 3-4 days or Exit right now ?. . Regards,. Gaurav Jain  ... (Read More)

Mar 13, 2018 08:55 GMT· 3 · Reply

Likely the breakout can retrace. I am trying to take trade in option using spreads based on my trading signal using your Price action approach, Kudos  ... (Read More)

Mar 13, 2018 07:31 GMT· Reply
Kapil Baldawa
Kapil Baldawa

Very much at the exorbitant levels considering Tata Motors is back with a bang. I think the max upside here is 152-154 range and it'll fall all the way to 120 next month  ... (Read More)

Mar 13, 2018 06:46 GMT· Reply
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