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Can CESC Hold On To Critical Supports?

Can CESC hold on to critical supports?

The demerger of  CESC into three separate entities has had a overhang on the stock for the past several months. The stock  made a shooting star right in the zone of resistance at 1060. The same has been marked on the charts. Shooting star is a single stick reversal pattern. The pattern was significant as it came on the resistance zone. The stock has fallen drastically in the past two months and is currently at an important zone. First the stock has a Fibonacci confluence zone at 677-685. The confluence zone acts as a good support. This zone is also significant as it is the 2008 top. Hence previous tops act as good support once broken.  Second the stock is regaining the 1*2 Gann angle and hence it is very positive. Third the RSI is in the 39-40 zone which is the zone of the bulls.  Taking note of the sharp fall the stock looks likely to retrace from the current levels. The stock should retrace to the 823 levels which is the Sep-14 highs and also happens to be the Fibonacci confluence zone. Therefore a good 20 percent upside in the stock is in the offing.

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