Technical Analysis

SBI fails to break a key resistance

Yoganand D | Updated on January 23, 2018 Published on May 24, 2015

24SBICL.eps



SBI (₹282.4)



The stock tested the significant resistance level of ₹290 and surged 6 per cent to record an intra-day high at ₹305 levels on Friday. But, it failed to make a decisive close above this level; instead, it gave away its gains and fell 2.4 per cent in that session. Though the stock hovers just above its 50- and 200-day moving averages, the downward reversal from the significant resistance has the strength to breach them and drag the stock further. The short-term outlook is bearish. It can decline to ₹270 and then to ₹260. Short-term traders can initiate short positions with a stop-loss at ₹292 levels. As the stock has failed to decisively rally above ₹290, investors with a medium-term perspective can remain on the sidelines. An emphatic break above ₹290 will alter the bearish outlook and take the stock to ₹300 and ₹310.



Published on May 24, 2015
This article is closed for comments.
Please Email the Editor