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Investors with a short-term perspective can consider selling the stock of UCO Bank at current levels. The stock has been on an intermediate-term downtrend since encountering a key resistance at ₹115 in July 2014. Medium-term trend is also down for the stock. Following a corrective rally from the March 2015 low of ₹61.7, the stock met a key resistance at ₹70 and reversed down. Moreover, the upper boundary of the Bollinger Bands at around ₹70 acted as a significant resistance.
On Monday, the stock fell by 3 per cent resuming the medium- as well as intermediate-term downtrend. The indicators on the daily chart have reversed downwards. Further, those indicators on the weekly chart continue to feature in the bearish zone backing the stock’s downtrend. The stock can continue its decline and reach our price target of ₹63 and ₹61.5 in the coming trading sessions. Sell the stock with a stop-loss at ₹67.2.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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