Apollo Tyres: end of uptrend, exit-long

| October 19, 2014 | India
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Company profile: Apollo Tyres Limited manufactures tires and tubes for cars, trucks, farm equipment and light commercial vehicles. The Company also manufactures car flaps and retreading materials.

With bearish divergence and the completion of a Wave 5 cycle, the current uptrend is very likely to come to an end. Tighten stops to 190.75 or exit-long all together. Breaching 190.75 triggers a lengthy zig-zag correction back to minimally 159.90 and possibly even 102 on a 6-month horizon.

  • Primary trend: positive (late phase)
  • Outlook: end of uptrend, tighten stops or exit-long
  • Support: 190.75 / 159.90 / 102-
  • Resistance: 226.45

Weekly chart Apollo Tyres

apollotyre_19oct2014

9 July 2014

A difficult to trade zig-zag correction is expected before things cool down in the 144-142 area. Such a correction could easily take 2-3 months and is best left alone until over. Keep in mind that the primary trend is still very much bullish and only challenged below 135-ish.

Protect existing longs or partially close positions to re-enter after the correction ends.

  • Primary trend: neutral
  • Outlook: negative < 77.70
  • Support: 77.70 / 62.05* / 51.00
  • Resistance: 92.50 / 102.45

Weekly chart Apollo Tyres

apollotyre_9jul2014

1 February 2014

The long-term trend line of 2009 has been breached a while ago. The ensuing recent pull back has left a new lower peak on the chart, thus forming the right shoulder of a Head&Shoulder reversal pattern. A break below the neck line at 77.70 triggers a new primary down trend towards 62.05. Below that, a broad support zone comes in around 51. Sell the breakout with initial stops above 92.50.

  • Primary trend: neutral
  • Outlook: negative < 77.70
  • Support: 77.70 / 62.05* / 51.00
  • Resistance: 92.50 / 102.45

Weekly chart Apollo Tyres

apollo_1feb2013

 

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Category: India