The stock of Bosch has been in the limelight recently for two reasons. One is the good results that it came out with for Q1 where the Ebidta jumped even as revenue remained flattish. Second was the takeover of Johnson-Hitachi air conditioner business in India.

Both these were well received by the market and the stock was pushed to fresh all-time highs. At these levels, Bosch trades around 44x of its estimated forward earnings, which appears to be stretched.

On the charts, we find that follow thru action after the punch up to all-time highs has not yet emerged. There is a Fibonacci external count target zone that has been reached. Other counts indicate a possible move till around 42250-500 area also. However, the movement higher seems to be losing momentum, as can be noted from the RSI chart.

Chart is annotated with Gann angles and the slopes are being followed well. While there is still scope for upside movement, the downside needs to be protected too, as the momentum and valuation signals indicate. The nearest Gann angle line can be kept as a trailing stop on longs.

At this juncture, fresh longs may be tricky while a pullback to near 36000 can be used to add once, with a stop nearby.