The short-term prospects of Power Finance Corporation appear rather dim. Investors can, therefore, consider selling this stock with a trading perspective. The stock encountered resistance around Rs 170 on Monday and started declining. The stock has significant long-term resistance in the band of Rs 170 to Rs 175. It also formed a shooting star candlestick pattern, a bearish reversal pattern around this resistance level before reversing lower.

The stock has also breached its short-term uptrend line that was in place from late October. During the last session, the stock fell 3.5 per cent with strong volumes, breaching its 21-day moving average. Moreover, the stock has formed a bearish engulfing candlestick pattern on the weekly chart, signifying trend reversal.

The daily moving average convergence divergence indicator has signalled a sell. The indicators on the weekly chart are hovering in the neutral region with a negative bias. It can continue its downtrend to reach the price target of Rs 146.5 or Rs 143.5 in the approaching trading sessions. Sell the stock while maintaining a stop-loss at Rs 155.7 level.

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