After the cabinet approval of FDI approval in retail segment, some stocks have been moving upward. Pentaloon Retail (I) Ltd. is one of such stock.
Let's discuss its technical chart using Ichimoku Kinko Hyo indicator.
On 18-Aug-2011, Pentaloon stock price have bearish breakout as it CLOSED below kumo on 275.15.
It tried to go upward from there but faced STRONG resistance on kumo. As a result, it started moving downward and touched a low of 148.10 on 16-Nov-2011.
Now, after the FDI in retail news, it moved upward and many of the traders have started buying it also. But if you look at the chart carefully, it is trading inside kumo – which is no trade zone. You should buy it if it CLOSED above kumo, which is currently at 243.40.
Strong support is at 200.80 and 192.80.