This stock may drift towards 23 or lower!
Nice thread!
I have become interested in this company, as it may prove to be a value play. However the prices are likely to drift lower, as per the charts. For three months the prices have been moving southwards in a channel. Today’s closing price is lowest of these three months. 50DMA is below 100DMA. The prices are likely to drift lower after remaining close to the resistance line for several weeks. This was in anticipation of the Q2 results, which are not encouraging. Historical lowest closing for the stock is 23.4. In my opinion, the stock is likely to retest these levels.
The views of the borders are invited regarding the appropriate entry point in this stock. This is a cyclical play now, and we need to be careful about the entry point in this stock. New capacity will become operational during this quarter. This may positively or negatively impact the bottom line of this quarter. Further cotton prices (Indian and international) and raw yarn prices will be important Can somebody dig out these trends?
