Targets : 1467-1398, Sell : Below 1520 Stoploss : 1600 Duration : 3-4 weeks
Outlook:
The gradual upmove of the last 4-5 months seems to have completed, as the stock price has started to show weakness from the highs during this week.
Initial evidence of a beginning of declines is visible in terms of downside breakout of “Double Top Pattern” with first top at price of 1590 on 26/04/2017 and second top was formed on 02/05/2017 with closing price of 1591.85. Midpoint was formed on 28/04/2017 with a price of 1537.15.(black parallel lines) around Rs.1533 levels during this week.
However, stock prices are hovering around the major support trendline, break of which may result into a breakdown of a “Rising wedge” like pattern on daily charts.
Daily 14 period RSI has now turned down from near 50 levels, also resulting into “Bearish Divergence” which is signaling a weak strength in the recent upside of the stock.
Bearish MACD line has crossed below signal line today, Slow Stochastic is falling below overbought range, which signals caution for the stock.
Overall negative structure of chart and momentum pattern in HDFC Ltd is indicating an opportunity for sell for near term. One may look to sell this stock as per levels mentioned above.
Outlook:
The gradual upmove of the last 4-5 months seems to have completed, as the stock price has started to show weakness from the highs during this week.
Initial evidence of a beginning of declines is visible in terms of downside breakout of “Double Top Pattern” with first top at price of 1590 on 26/04/2017 and second top was formed on 02/05/2017 with closing price of 1591.85. Midpoint was formed on 28/04/2017 with a price of 1537.15.(black parallel lines) around Rs.1533 levels during this week.
However, stock prices are hovering around the major support trendline, break of which may result into a breakdown of a “Rising wedge” like pattern on daily charts.
Daily 14 period RSI has now turned down from near 50 levels, also resulting into “Bearish Divergence” which is signaling a weak strength in the recent upside of the stock.
Bearish MACD line has crossed below signal line today, Slow Stochastic is falling below overbought range, which signals caution for the stock.
Overall negative structure of chart and momentum pattern in HDFC Ltd is indicating an opportunity for sell for near term. One may look to sell this stock as per levels mentioned above.