Ashok Leyland a good buy for medium term

The weekly charts of Ashok Leyland suggest a fresh up move over medium term is likely on the charts.

The price has broken out from a large symmetry whose formation has spanned for over couple of months. Any breakout and sustenance over Rs 94 is likely to take the stock towards its previous highs of Rs 114-115.

The other important factor that once cannot ignore is that the OBV – On Balance Volume remained sideways while the stock corrected.

While the Weekly MACD has reported a positive crossover, the Weekly RSI has marked a fresh 14-period high which is bullish.

Investors may enter this stock with a four to six-month perspective with target price of Rs 115.



(Milan Vaishnav, CMT, is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)