SunnyPawar

Kotak Bank: Possible Top Formation (Medium Term)

Short
NSE:KOTAKBANK   KOTAK MAHINDRA BAN

There is a possibility of KotakBank forming a Head & shoulders pattern with "equal low" in formation and then "lower high" and "lower low" are expected which should complete H & S pattern.

It is possible because the weakness is evident in KotakBank as it looks like "big players / smart money" selling off - distribution, and retailers "Weak hands" buying. Rsi also confirms divergence.

If shorted after neck line break, Rs 829/- should act as a support, which also coincides with key Fibonacci ratio 0.618.

Possible downside is about ~16.79% to 829/- rs from the present price of 992/- rs
[Note: The Head & Shoulders Pattern is not yet confirmed, it only confirms after neck line break and in that case there will be good opportunity to short or exit long]

Comments

P.S. It is a "Possible" Top formation and "not confirmed", means that "supply should continue for this pattern to form". If demand comes in then it should find support at neckline @ 934 rs .
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