Technical Analysis

SBI has room to rise further

Gurumurthy K | Updated on January 23, 2018 Published on April 12, 2015


SBI (₹285.65)

The corrective rally in SBI extended for the second consecutive week. It decisively breached its 200-day moving average resistance at ₹277 and closed 4.5 per cent higher last week. There is still room for the stock to move higher to ₹292 and ₹295 — the 50 per cent Fibonacci retracement level. Short-term traders can go long with a stop-loss at ₹281 for the target of ₹292. A strong break above ₹295 will be cue for the reversal of the short-term downtrend. It can take SBI to the next target of ₹300. A decisive close above ₹300 will confirm the trend reversal. But if it reverses lower from ₹295, a fall to ₹283 and ₹280 is likely. The medium-term bullish outlook remains intact with supports at ₹255 and ₹235. Medium-term investors can hold the stock with a stop-loss at ₹230.

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Published on April 12, 2015
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