AuroPharma: Resistance turns to Support

AuroPharma has pulled back to a level which was previously a resistance zone near 600. This zone may act as a support now because of a basic principle of support and resistance.

"A resistance once broken on the upside may turn into a support later on. Conversely, a support once broken down may act as resistance later on".

The level 600 coincides with the 61.8% retracement level as visible on the chart. So that is another plus point.

It could be a medium to long term buy with SL below 590 for targets of 797 and then 877. Stop can be trailed higher to 643 if the trend resumes on the upside.
It could also be taken as short term buy with SL below 643 for a target of 730

Disclaimer:
Not Sebi registered
No personal investment in the stock

Kommentera:

Pullback towards 650-660 could be a good buy opportunity to reduce the risk.