ICICI Bank is set to come out with earnings report today. Technically, the stock is at decisive level and can go either way.
ICICI Bank: At important support level
ICICI Bank has been one of the breakout stocks of last 1.5 months. It managed a smart breakout above 780 and rallied to levels of 960+ before cooling off.
Source: ChartAlert [www.chartalert.com]
The stock is now back to the same levels from where it rallied. It is also at 100 dma. The result reaction may set the trend for the stock. There are three probabilities -
Stock breaks 100 dma: If it collapses from current levels because of any reason - expect even sharper decline to 200 dma which currently stands at 615.
Stock turns sideways between 100 dma and 50 dma: It means stock may become range bound between 770 and 840.
Stock resumes uptrend [unlikely]: Stock may strongly rally from 770 to 1000+ levels. For this scenario to happen, the stock may need some Corporate development help like value unlocking, new business initiatives etc.
So, keep an eye on the stock and see how it reacts to earnings because that will decide where stock will head next.
No comments:
Post a Comment