BHUMIT-ARQ
Short

Pause For Indianbank

NSE:INDIANB   INDIAN BANK
78 3 2
Targets : 320-305 Sell range : 351-359 Stoploss : 375 Duration : 3-4 weeks

Rationale :
The attached daily timeframe chart of this Public Sector-Bank participant (Indian Bank) is indicating a beginning of a sharp weakness in the stock price, which is trading within 6.0% of Two Year High of 365.0 touched on 16-May-17.
The gradual upmove of the last 5-6 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, as the stock price has lost momentum near Upper channel line (2 standard deviation from the median line ) and trying to reverse towards its median levels.
Dark cloud cover Candlestick pattern was formed by Indian Bank on 17/05/2017 and is considered as bearish reversal pattern.The formation of bearish candle in the last trading session, further confirms this patterns reliability.
However, in this process we also observed prices making higher highs while indicator ( RSI ) makinhg lower lows resulting into “Regular Bearish Divergence” which is signaling a pause for further upside of the stock.
We believe the stock has the potential to move lower in the coming weeks as it attempts to test its mean levels near 320 . We therefore recommend a Sell at CMP and selling more on any rises. Our entry levels, along with stop loss and targets have been mentioned above.
Trade closed: target reached
nifty is showing weakness and bank nifty has made double top.. rsi around 80 rite, macd crossing down,12 sma crossing 50 sma downwards.. and as u mention a divergence.. it was a perfect short call, and so it did fall lot, saw only now / still rsi is 75 feel that a trade can still be taken i hope
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@shiyas, Yes lets watch
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nice one. tnks
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