Ambuja Cement (NSE cmp 206) is trading in a range of 20 pts for last three months. Although the index made a life time high in this time period, Ambujacem did not. It continued to make a triangular trading range.
It seems the stock has broken the triangular pattern on the downside. Daily RSI is also signalling weakness in the stock. Sudden increase in volume compared to last few trading sessions also supporting the view. We recommend selling the stock below 204 for targets of 196 & 185 with stop above 213.85. However if prices reverse & close above 214, long trade can be initiated for targets of 220 & 228 with stop below 207.
