Yes Bank hits near 6-year low, in final wave of correction

Reuters August 22 | Updated on August 22, 2019 Published on August 22, 2019

The shares of Yes Bank Ltd dropped as much as 18.65 per cent to ₹53.2, their lowest since Sept 5, 2013 before closing at ₹56.3.

The stock may fall into a range of ₹52.38 to ₹47.01, identified as the 23.6 per cent Fibonacci projection level on the downtrend from April 10 to July 18 and the 100 per cent projection level on the downtrend from August 20, 2018 to September 28, 2018.

However, the wave pattern suggests that the stock is in the final wave of correction, and an uptrend may start from the ₹52.38 -₹47.01 range.

It broke below a support at ₹70.04, the 14.6 per cent projection level, suggesting a move towards the range of ₹52.38- to ₹47.01.

The relative strength index (RSI) indicator is below 30, implying that the stock is undervalued. The stock trades at a 12-month forward P/E of 11.4, suggesting it is trading at a steep discount compared with its 2-year and 5-year average PE of 14.1 and 14.7, respectively.

The trend intensity (TI) indicator rises to 26, which suggests that prices are trending downward; MACD is negative and below its signal line.


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Published on August 22, 2019
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