Technical Analysis

Bank of Baroda (₹97.6): Sell

Yoganand D | Updated on August 08, 2019

Investors with a short-term view can sell the stock of Bank of Baroda at current levels. The long-term trend is down for the stock. Since encountering a key resistance at ₹140 in late May this year, the stock has been in a medium-term downtrend. Short-term trend is also down.

While trending down, the stock breached a key support as well as the 200-day moving average in late June. The stock trades well below its 50- and 200-day moving averages. On Wednesday, the stock tumbled 6 per cent accompanied by above average volume breaking below key medium-term support level of ₹100. This fall has strengthened the downtrend.

The daily relative strength index features in the bearish zone and the weekly RSI has entered the bearish zone from the neutral region. Moreover, both the daily and the weekly price rate of change indicators hovering in the negative terrain imply selling interest.

The short-term outlook is bearish for the stock. It can continue to trend downwards and reach price targets of ₹93.5 and ₹91.5 in the short-term. Traders can sell with a stop-loss at ₹100.

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

Published on August 08, 2019

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