MOTHERSON SUMI - MAKE OR BREAK?
On the daily time frames, there are important supply and demand zones that have been respected throughout. Demand Zone ranges from 55.45 - 53´s and the Supply Zone ranges from 67.30 - 68´s. Any breach of the said zones can result in massive moves for the stock. The stock can give a good swing play upon the breach of the demand zone, the target for which is lower 40´s. I, personally hold a short bias due to the bearish nature of the stock.
On a shorter time frame, developing in about 1-2 days, the stock is showing an up-move. The reason being that, after a steep fall, I see a retracement uptill the exhaustion point. The retracement would not constitute the momentum of the fall but it would take place in tranches. The setup will materialize on the breach of the trendline in pink on the upside, with a retracement back to the trendline (where I would look to enter). The exhaustion point will be at 61.05. However, the setup will be invalidated if the price action breaks the trendline on retracement.
On a shorter time frame, developing in about 1-2 days, the stock is showing an up-move. The reason being that, after a steep fall, I see a retracement uptill the exhaustion point. The retracement would not constitute the momentum of the fall but it would take place in tranches. The setup will materialize on the breach of the trendline in pink on the upside, with a retracement back to the trendline (where I would look to enter). The exhaustion point will be at 61.05. However, the setup will be invalidated if the price action breaks the trendline on retracement.
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