YESBANK - Daily -Breakout with volumes -Inverted HnSThis is a daily chart for YES BANK LTD (YESBANK) as of May 9th, 2025.
Here's a technical analysis of the chart:
Falling Wedge Pattern:
The stock was in a clear downtrend, forming a falling wedge pattern from approximately February 2024 to early 2025. A falling wedge is often a bullish reversal pattern when it occurs after a downtrend.
The price broke out from the upper trendline of this falling wedge around January/February 2025.
Inverted Head and Shoulders Pattern:
Following the breakout from the falling wedge, an inverted head and shoulders pattern appears to have formed. This is also a bullish reversal pattern.
Left Shoulder: Formed around February 2025.
Head: The lowest point, formed around late February/early March 2025.
Right Shoulder: Formed around April/early May 2025.
Neckline: The neckline of this pattern is approximately at the 19.41. The price is currently testing and attempting to break out above this neckline.
Volume:
There's a noticeable increase in volume on the recent candles as the price challenges the neckline of the inverted head and shoulders pattern. This is a positive sign and can add conviction to a potential breakout.
Support and Resistance:
Immediate Resistance: The neckline area of 19.41 - 20.02 is the critical immediate resistance. A decisive close above this level is needed to confirm the breakout.
Next Resistance/Target: The chart indicates a potential target of 22.73 based on the height of the inverted head and shoulders pattern (approximately 3.33 points) projected upwards from the neckline.
Support:
The lows of the right shoulder (around 17.50-18.00) would act as initial support.
The low of the head (around 16.02) is a more significant support level.
The upper trendline of the previous falling wedge could also offer support if retested.
Interpretation:
The chart for Yes Bank shows multiple bullish reversal signals.
The breakout from the long-term falling wedge was the first sign of a potential trend change.
The formation of the inverted head and shoulders pattern further strengthens the bullish case.
The stock is currently at a crucial juncture, attempting to break out above the neckline of the inverted head and shoulders. The increased volume is supportive of this attempt.
A sustained close above ~20.02 would confirm the breakout and suggest a potential move towards the target of 22.73.
Failure to break out or a rejection from the neckline could lead to a retest of lower support levels.
Disclaimer: This technical analysis is for educational purposes only and should not be considered financial advice. Always conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions
