Technical Analysis Gujarat Apollo Industries Ltd (GUJAPOLLO)

The stock $GUJAPOLLO climbed impressively from the 175 levels all the way up to a peak of over 550. However the overall trend has recently shifted and the stock is currently going through a corrective phase. Ever since hitting that major top the price action has consistently been making lower highs and lower lows. This continuous pattern clearly indicates that the stock is currently in a short-term downtrend and the initial bullish momentum has faded for now. Looking at the downside there is a very clear and strong support zone established around the 345 to 350 level. The stock price recently dropped into this specific area and immediately stopped its downward fall which is a highly positive sign. If the stock starts moving up again and attempts a recovery it will face some significant hurdles. The immediate resistance it needs to cross is situated near the 400 to 425 level. If the price manages to break and successfully sustain above this 425 area with good trading volume it will open the gates for further upside. For short-term buyers it is best to avoid fresh entries right now and wait for a clear reversal confirmation near the 345-350 support zone or enter only after a strong breakout above the 425 resistance. For existing holders you can continue holding your positions but it is strictly advised to maintain a firm stop-loss slightly below the 345 level.