Technical Analysis Lemon Tree Hotels Ltd.

The stock $LEMONTREE witnessed a severe corrective phase starting from October last year peaks near 175-180 down to late March/early April where it found a solid floor around the 100-103 zone. The chart shows a clear transition from a markdown phase to an accumulation phase. It has formed a Rounding Bottom or a Double Bottom-like structure near the 100 level indicating that the selling pressure has exhausted. Immediate Support 105 – 100. This is a strong demand zone. As long as the stock stays above 100 the short-term structure remains positive. Immediate Resistance 120 – 123. The stock is currently trading right below this minor hurdle. A decisive daily close above 123 will trigger a fresh breakout. Major Upside Target 135 followed by 148. These are the next structural supply zones on the daily chart. For short-term buyers the stock provides an aggressive buying opportunity as it moves toward a breakout above the 120-123 resistance level with a strict stop-loss kept below the 105-100 demand zone. Meanwhile existing holders should firmly continue to hold their positions as the stock has formed a strong structural bottom around 100 and shows clear signs of a trend reversal backed by recent volume spikes.