The stock of Union Bank of India fell more than 4 per cent on Monday, breaching a key support at ₹155. Investors with a short-term perspective can sell the stock at current levels. Since encountering a key resistance at around ₹250 in late January, the stock has been on a medium-term downtrend. Following a corrective rally, the stock met with resistance at ₹175 and resumed its downtrend that intensified recently.
The relative strength index on the daily chart has entered the bearish zone from the neutral region. The weekly RSI has re-entered the bearish zone backing the medium-term downtrend. The stock trades well below its 50- and 200-day moving averages. Both the daily and weekly price rate of change indicators are featuring in the bearish zone indicating selling interest. The short-term outlook of the stock is bearish. Sell the stock with a stop-loss at ₹151.5. The targets are ₹141.5 and ₹138.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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