AEL as a Company in the Construction Space is poised to out perform the KPI's in the Sector. This expectation is bringing in a lot of attention to the counter in an unprecedented way. Huge volumes are changed hands during the lower levels in May to the present highs. But we now see a critical area of resistance for the counter. During the 900 days long rally we saw during May 2012 to June 2014 when the prices rose from a low of 13.50 to the all time high of 40.20, the prices went through a long and tiring consolidation around the same zone that it has now moved into. I expect it to trend side ways in this zone between 21.80 and 24.10 with occasional tests in the zone between 20.00 and 21.00. Until a breakout above 24.10 on closing basis coupled with massive volumes, the next levels of resistance points will not be tested.
Strategy - Buy on Dips.
No Stop Loss is needed as the Forward Out Look is Bullish.
Most Importantly note that if You do not have the guts then please don't buy.
An ideal time to accumulate in stages if you are holding the stock at a higher average cost. Also if you have got into it after May'19 and wandering what to do, be patient and do not exit in full. If you have exited or sold in part, collecting at lower end of the zone or within the next support zone of 20.00 to 21.00, is not a bad idea at all.
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