Eicher Motor tests the multiple support line

Eicher Motor supports the multiple support lines in the daily chart. Eicher Motor is one of the strongest stock of decade have created all time high of 33, 480 in Sep last year. After that it started creating lower low and lower highs in the chart. On Thursday, Jan 25, 2018 the stock has formed doji in the candlestick chart. Though doji will not make the significant difference, the placement and the volume of the doji makes it special.

Eicher Motor tests the multiple support lines - Support line, Neckline & Gap
Eicher Motor tests the multiple support lines – Support line, Neckline & Gap

The level 26,380 have the medium term support levels. The stock was forming doji right on the line with significant volume.  The stock also formed Head and Shoulder pattern formation over the last 9 months. The support line will also a neckline for Head and Shoulder pattern. There is also a small unfilled gap-up around 26,150 – 26,170 levels. The volume, support line, neckline & the Gap makes the doji special.

The stock likely to go up if it could find some follow-up action in the coming days.

Muthuraj Paulraj

Passionate about investing and trading in Options.

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