Idea Cellular – 7 Dec 2016

Even though the longer term outlook remains fragile, the near term chart does offer some opportunities. Bullish divergence at the latter stages of primary down trend (especially weekly) could ring in a recovery phase on both the near term and longer term charts. Clearing 78.80 should entice buyers back to roughly 102 or even 113 over the next 1-3 months.

Since stops can be kept nearby at 69.50 we see this stock as a good long-entry opportunity without too much risk. Above ~88 stops should be tightened to at least break-even.

  • Current trend: basing
  • Outlook/expectations: trend reversal > 78.80
  • Strategy: buy breakout > 78.80
  • Support: 69.50 / 66.50-
  • Resistance: 78.80 / 102 / 113

Daily chart  Idea Cellular (NSE)