Motherson Sumi Could Test New High

Motherson Sumi:- Taking a look at the chart we can easily identify that the stock have been in the strong uptrend since 2016. On the weekly chart we have spotted a bearish Head and Shoulder patter, this patter is commonly used to spot change in the major trend. At the same time we have spotted a strong support around 300 level. We have noticed multiple support indicator at same zone in this stock: 1. 100 EMA on the Weekly chart (294.26). 2. 20 EMA on the Monthly Chart (303). 3. 38.2% Fib Retracement from point A TO B (296.85) 4. 50% Fib Retracement from point X to B (291) 5. Uptrend Support Line If price manage to hold this support zone we will see the continuation of uptrend. If it failed to hold this level we will see a down trend that may be continue for 3 or 4 month. The breakout of Head and Shoulder Neckline will push the stock to the next support level of 235 that was acting as resistance in the mid 2015 and 2016. The +(ve) divergence in oscillators like RSI and Stochastic supporting the bullish view on the stock. The crossover in the Stochestic also suggesting the reversal in the movement of the price. According to this analysis we will be in the long possiton in this stock for the target of 380 and 450 with the Stop Loss below the 100 EMA.