Technical Analysis Pricol Ltd.

The stock

recently enjoyed a strong upward rally climbing from the 420 levels up to a peak near 680-700. However since reaching that top the stock has shifted into a clear downtrend. It is consistently making lower highs and lower lows which shows that sellers have taken control of the price action in the short term. Right now the stock is trading around 513.90. This is a very critical support zone between 500 and 515. If you look back at October and early November on the chart this exact price area acted as a base before the huge breakout. In technical analysis past resistance often becomes current support. The stock is testing this important floor right now. If the stock manages to bounce from this support it will face immediate resistance around the 560 to 580 zone. A stronger hurdle sits near 620. To reverse the current downtrend and turn totally bullish again the stock needs to break above these resistance levels and start making higher highs. Bullish case watch for a strong reversal pattern right here at the 500-515 support level. A strong green candlestick with high volume or a double bottom pattern would be a good early sign that buyers are stepping back in. Bearish case if the price breaks solidly below the psychological 500 level with heavy volume the downtrend will likely continue and the stock could fall toward the 460-480 levels. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.