Hero Honda has been going down recently, and although I’ve sold my personal holding (disclosure: Family still holds) the story looks bleak:
This is slightly shady of me, because technically that’s probably not the perfect H&S formation, but hey, I’m using my creative license. The stock broke through all moving averages and is now at a breakdown zone. The 1800 mark is a pretty big resistance on the way back up, so it can be used as a target on a swing reversal, or the 20 DMA (not shown).
Fundamentally the news is that Honda is saying goodbye and there’s a suspicion the Hero group won’t be able to manage. We have to wait and see – TVS and Bajaj seemed to have done okay. Bajaj in fact has gone up 10% in the last two days. (Disclosure: I own that stock)
