ICICI bank Good short CandidateICICI Bank has formed an Ending Diagonal Pattern near its recent highs, typically signaling a potential reversal in trend. This pattern is often observed in the final stages of an uptrend and suggests exhaustion in bullish momentum.
Following the completion of the diagonal, the stock has broken down below the lower trendline, confirming the bearish setup. Furthermore, it has already completed a retest of the breakdown level, which strengthens the validity of the reversal signal.
From a trading perspective, this setup offers a favorable risk-reward ratio for initiating short positions, especially with a clearly defined invalidation level (above the retest zone) and a potential downside target aligned with prior support levels or Fibonacci retracement zones.
Summary:
Pattern: Ending Diagonal (Bearish)
Status: Breakdown and retest completed
Outlook: Short bias with favorable risk-reward
Watch levels: Retest zone (resistance), key support for profit booking
