Triangle pattern observed in SBIN. Pattern looks to have confirmed suggesting a bearish outlook. Target depth of triangle is around 25 points. With confirmation of pattern occurring at 347.50, Target of the pattern comes in at 322.70. A retracement towards the pattern before further weakness cannot be ruled out. Notice that 334 could offer a good support.
Recent bullishness and last week close above 350 levels in SBIN warrants more attention.
325 to 350 region has been a zone of uncertainty with many failed breakouts.
It should be noted that ATR during last week was around 18. The stock moved into a historical supply zone with 2ATR move of 35 pts. This calls for caution.
The current sharp move upwards was...
The stock has been trading in a channel for quite some time now..
Potential trade opportunity
Channel trade potential
Sell at cmp
Target 295/ 288
SL If closing above 303
Break out trade potential on close above 303
Take care and safe trading...!!!
SBIN SEEMS TO BE MAKING A LIMITING TRIANGLE IN B WAVE. THERE ARE 2 POSSIBILITIES HERE.
1. THE B WAVE COULD BE A COUNTERPART OF WAVE A AS DEPICTED IN THE CHART. IN THIS CASE, THE TRIANGLE SHOULD BREAK-OUT ON THE UPSIDE WHICH GIVES A TARGET OF 300 WITH A STOPLOSS OF 283. THIS IS THE MOST PROBABLE SCENARIO AS OF NOW
2. THE B WAVE COULD BE FORMING AS A COUNTERPART...