Dr. Reddy's Laboratories Limited (NYSE:RDY)
Q: Is it right time to buy RDY? Please let me know. Thanks, Surya
A:We issued an Uptrend on RDY on 3/18 at just under $9 per share. Stock has done remarkably well since. The stock reached its June 2008 high and was able to clear it momentarily but that former resistance is creating some churn at these current level and RDY is in the midst of correcting an overbought condition. Our indicators are just now starting to tick higher after these past few weeks of consolidation. RDY may find resistance at $17 again but that can be your signal –be mindful of that resistance area since it could continue to trade sideways for a while as people who bought in June 2008 are trying to sell at breakeven. You can also wait until the sideways move ends and RDY closes above $17 indicating it may be ready for new highs.