The attached chart of this Private Sector-Bank participant (Indusind Bank) is indicating a beginning of a sharp weakness in the stock price.
The gradual upmove of the last 5-6 months seems to have completed, as the stock price has started to show weakness during this week.
Initial evidence of a beginning of declines is visible in terms of downside breakout of the immediate support resulting into breakout of an “ Head & Shoulders” pattern on around Rs 1402 with sudden rise in volumes.
Technical indicators are currently giving negative signals as the stock trades below the short term and medium term (50 day ) moving averages. Momentum indicators like the 14-week are in decline mode. Weekly line is crossed down 9 week .
Moreover, Our momentum oscillator based on the smoothed rate-of-change ( KST ) is giving a negative reading. A negative reading means the weighted and smoothed rate-of-change values are mostly negative and prices are moving lower.
The overall negative chart setup is showing an opportunity for short trade. Look to Sell Indusind Bank as per levels mentioned above.