Stock of the year at important junction

9 oct 2023

ITC after having a splendid run throughout the year is now at a very important junction. It is a fairly visible H&S (Head & Shoulder) in making but breakdown looks like snowball's chance in hell. Hence that means ITC can be a good reversal candidate but only after strong close above 456 level. That should lead ITC towards 500 and then further for new highs. Breakout above 456 may look for a inverted H&S or double bottom breakout. Things are difficult for equity market but the course of this war shall be decided in upcoming days when we will know the participating countries and fronts. One can add ITC at current levels if they have missed the rally throughout as it is holding on its levels, 432-430 shall act as stop loss. A closing below these levels shall trigger the breakdown of the above-mentioned H&S. We have 2 inside bars in last 4 candles which also indicate accumulation at current levels. It will be very exciting to see which way these positions move. If a breakdown takes place then ITC will move towards 415-420 levels otherwise this trending stock should remain the contender for more upside this year and further.