Ashok Leyland Ltd. shows weak development in a falling trend channel in the medium long term. This signals increasing pessimism among investors and indicates further decline for Ashok Leyland Ltd.. The stock has broken an inverse head and shoulders formation. A decisive break, preferably with increasing volume, is considered a confident signal of the start of a rising trend.
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It also gave positive signal from the inverse head and shoulders formation at the break up through the resistance at 151. Further rise to 168 or more is signalled. The stock has marginally broken up through resistance at rupee 153. An established break predicts a further rise.
Volume tops and volume bottoms correspond well with tops and bottoms in the price. This weakens the falling trend and could be an early signal of a coming trend break. The RSI curve shows a rising trend, which is an early signal of a possible trend reversal upwards for the price as well. The stock is overall assessed as technically positive for the medium long term.
