Comments
Investors with a short-term perspective can consider selling the stock of Federal Bank at current levels. The stock has been on an intermediate-term uptrend since taking support at ₹72 in February this year. Also, the uptrend in this stock gained momentum after breaching its long-term resistance at ₹107 in May. Thereafter, the stock started to consolidate sideways, forming a raising wedge pattern. After recording a new high at ₹136, the stock began to decline forming a bearish engulfing candlestick pattern. Further, this decline is backed by negative divergence in the daily as well as weekly indicators. On Monday, the stock fell almost 2 per cent breaching its 21-day moving average.
The price rate of change indicator on the daily chart has entered the negative territory implying selling interest. We are bearish on the stock from a short-term perspective. The stock can decline to ₹121.5 initially and then to ₹119 in the upcoming sessions. Sell the stock with a stop-loss at ₹129.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.