One of the largest PSU Bank of India has hurted many investors in recent years. Although it needs courage to comment anything about this stock but analysing the pattern carefully, I have started feeling positive about this stock. From its peak the counting of the 5th wave seems completed. But the upside reversal is not yet confirmed.It needs to trade above the 135 Trendline for that. To be precise above 43.10 on weekly closing basis (as this is a weekly chart). Once this is confirmed and the wave enters the desired zone then it can give a easy run upto 59.70(first target) - 72.50(second target). It has recently taken the 135 trendline as resistance but I hope soon or sooner it will breakout into the desired zone to run for the targets.Of-course patience is required when we are targeting above 50%-70% return.
We need to understand :The condition of bank is definitely reflected in its share price, because market is always right. But let's be honest, will the condition remain same for the PSU Banks. Isn't it too long for the things the way they have been ? The very basic of Technical Analysis states,If a stock or index is in a pattern and if there is no news, market will make one to complete the pattern. Lets not forget market is a leading indicator not a lagging indicator of economy, Similar is with the share prices too. A small changes(hope) can make the share price fly even if it is not implemented and haven't changed the income statement but will in future .So lets be positive and hope for the best. Ultimately I am just a chartist and i can go wrong.
Please like and Follow. CHART & ANALYSIS BY ADARSH DEY
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Near to resistance line.It may take an attempt to Breakout here. Or else it will again get stuck in the triangular zone.
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Waiting for PNB to break this Red Zone.
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The story Begins. Will update with the target chart soon.
Let me tel more about this bank...very less mutual fund holding is there in this bank...fpi...that too..very less..bank has made their emplyess buy the banks share..from lower to top post...they knw..if price goes higher....people are ready to sell in bulk...so believe me... u have to see this 40...41..39...some more time.....