The stock of YES Bank appears to have resumed its medium-term downtrend that has been in place since it registered its 52-week high at Rs 547 in late May this year. Following a corrective rally from its key support band between Rs 220 and Rs 230, the stock encountered long-term resistance at around Rs 388 in mid-September. This level also coincides with the stock’s 50 per cent fibonacci retracement level of its previous downtrend. Since then, the stock has been on a short-term downtrend.

On Monday, it tumbled 5.6 per cent breaching its 21- and 50-day moving averages. There is a decrease in daily volumes in the past six trading sessions. Moreover, the decline has breached the stock’s immediate support at Rs 300 decisively. The daily relative strength index is declining in the neutral region and weekly RSI has re-entered the bearish zone from the neutral region. Both daily and weekly price rate of change indicators are hovering in the negative terrain implying selling interest.

Short-term outlook is bearish for the stock and it can decline to Rs 276 or Rs 270 in the ensuing trading sessions. Traders with short-term perspective can sell the stock with stop-loss at Rs 293.5 levels.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

(This article was published on September 30, 2013)
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