Finolex Cables falls 5% to two-month low near 200 EMA

Finolex Cables Limited shares fell 5.2% to Rs 1,139.90, a two-month low, on a sixth straight loss. Support is at Rs 1,100 and resistance at Rs 1,205. Finolex Cables Limited [

] shares fell 5.2% to Rs 1,139.90 on 22 October, the sixth straight session of losses. The stock traded at a two-month low. The session opened at Rs 1,200.00, which was also its high, and touched a low of Rs 1,117.00. Opening at the high and selling off through the day shows sellers in control. The stock has fallen sharply from the peak near Rs 1,500 in September. The stock is now just above its 200-day EMA of Rs 1,111.43, which also sits near a rising trend line from the April low. This is where the earlier uptrend is now being tested, so the reaction here matters. In my view, sellers are in control in the near term, but the stock is close to strong support, so the next move depends on whether the level holds. Rs 1,100 is the support, and a close below it, and below the 200-day EMA, would put lower levels in view. A move above the Rs 1,205 resistance would bring a recovery attempt into focus. Neutral stance while price trades between Rs 1,100 and Rs 1,205. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.