The price chart of this banking leader suggests three major issues :
1. The recent rise was NOT support by rising volumes
2. There is a clear negative divergence on the price charts suggesting that at least for some time Rs 1900 will be a price which the stock will find hard to break above
3. I will not be surprised if , in days to come, SBI tests the GAP area
The Nifty too is giving signs of exhaution and it is highly likely that the banking stocks may be one of the leaders leading us to the 'correction' in the market.
Investors and Traders ----CAVEAT EMPTOR (Buyers Beware!)
Incidentally, my previous analysis that the USDINR is suggesting a correction seems to be going as anticipated... Watch out!
CA Rajiv D Khatlawala
Head of Research & Training
JHAVERI Securities Ltd.
Baroda
2 comments:
dear Rajiv sir
Down side trendline drawn on rsi indicating encircled what does it mean.
Fan of your talent
laeeque shaikh
u may note that trendline concepts can be applied to indicators too (as we apply them to Prices) ... A break of trendline on RIS can give early warning signal of further selling . . .
Regards
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