Technical Analysis

RBL Bank (₹155): Buy

Yoganand D BL Research Bureau | Updated on March 25, 2020 Published on March 24, 2020

Investors with a short-term perspective can buy the stock of RBL Bank at current levels. After declining to an intra-day and 52-week low of ₹128.7, the stock bounced up strongly with good volume and closed 9.7 per cent higher.

The surge has resulted in formation of a dragonfly doji candlestick pattern on the daily chart which is bullish reversal pattern. Likewise, there is a formation of the dragonfly doji candlestick pattern on the weekly chart also.

Further, the daily relative strength index is displaying a positive divergence, backing the trend reversal. There has been an increase in daily volume over the past two weeks. The daily RSI is recovering from the oversold territory. Similarly, the daily price rate of change indicator is recovering from the oversold territory.

The weekly indicators are hovering in the oversold territory and a recovery is likely. The stock faces a key near-term resistance at ₹163. A decisive break above this barrier will pave way for a short term corrective rally in the upcoming trading sessions. Targets are ₹163 and ₹170.

Traders with a short-term perspective can buy the stock at current levels with a stop-loss at ₹148.

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

Published on March 24, 2020
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