Tyre stocks have been on a roll in recent months with even Apollo Tyres which was crushed on back of its proposal to buy Cooper Tyres having doubled once it was seen that the deal had no way to go but out. As can be seen in the Relative Strength chart below, the best performance in the last 6 months has been CEAT which has beaten the returns of other peers by a pretty wide margin. J K Tyres has not done too badly either and has been the third best performing stock (among its peers) in the last 6 months.
The chart of the stock is showing pretty strong trend though it failing today at the resistance level of 180 does mean that we may either see a small reaction before the longer term trend emerges or this may be the end for now. The pattern we are seeing in the stock is a Cup pattern. If the stock reacts a bit before breaking out, that would be a good sign of the trend having not yet exhausted. But on the other hand, if the stock starts to strongly react from here, it may be a while before we see a breakout above these levels (in recent times, I remember Mindtree which too reacted exactly at the rim of the cup and is as we speak down 21.50%).