First look at three
short terms top (indicated in the chart). These are 1308.45 then 1283.70 and
then 1226.50.
Look at short terms
bottom (indicated in the chart). These are 1105 then 1105.75 then 1095.20 and
very recently 1076.20.
(I have not written
those too many figures to keep the chart clean. So one must note these given
figures in mind)
Above is clearly
indicating about the formation of constant lower tops and lower bottom formation.
First three short term bottoms were more o less flat but the third one is
surely concerning. Why it is concerning?
Focus on fall from
1226.50 to 1076.20 = 150.30
Most general
recovery should have been retraced by 38.20% from 1076.20. Those recovery figures
are 1133.65. This stock hit a high at 1135.85 in impulse but practically
remains below 1130.
If any recovery
turns shy just near to 38.20 retrenchment then most of the time stocks is bound
to retest their recent previous lows. (This is the reason that past fewer
bottom remains near to the levels of 1100).
RSI – It has pushed
down to significant levels at each lower point. It is an indication that with
every newer low RSI is turning weak. This in turn can be concluded as lead sign
of some remarkable fall. Is it really coming? It is hard to conclude
immediately as I always prefer to take step wise approach.
My call as of now is
– firstly stay away form this stock for any kind of buying. Secondly, it can be
in turn a short with working stop loss 1136. (Take note - validity of this pattern and study is as long as it stay below 1133.65. Such patterns are there is some more banking stocks).
Regards
Praveen Kumar
