CENTURY TEX WEEKLY
On the attached weekly chart (Futures), you will observe that this stock has been making higher top/higher bottm for the past 7 weeks and closed last week at 391 after making a new 52 week high of 395.
My observations are as follows:
1. Current market price (CMP) is close to the previous high of 391 and 397.
2. As shown on the attached chart, CMP is close to the 50% level of 405.
3. At around 425 we have multiple resistance of the trend line (in Blue) and Andrew's Pithfork
Median Line (in Red).
In view of the above, 405-425 level could provide strong resistance. Hence, those holding long positions will do well to trail the position with stop loss of 380.
I must add here that stock will gain strength when it manages to cross the median line (425) hence short position should be avoided or be held with tight stop loss of 425. Considering that the stock has made a new 52 week high, buy on corrections would be a better strategy.
With Best Wishes,
Ketan Asher.
13.10.2012
