As can be seen from the chart above the stock is clearly in the downward sloping channel since January 2011, making lower high and lower lows gradually since then.
In June 2011 an inverted head & shoulder pattern was formed but the stock could not sustain the up move and it again started falling since first quarter result for current fiscal was announced in July 2011. The stock is already below the neckline formed during the inverted head & shoulder pattern and thus confirms the downtrend.
Hence investors should stay away from the stock until the stock completes a consolidation phase of a flattish range bound move. However traders can take advantage of this channel for trading gains, with strict stop losses below or above the channel.
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