Ranbaxy - A bearish candlestick pattern!

The Nifty tested the indicated resistance of 4940+ levels and retraced heavily from that level to close weak. The mood of the market is clearly negative. This is a great market for Intraday traders !

RANBAXY which was in limelight some time back, has been in a dwon move for some time. And after stagnating near recent lows, the scrip has formed a pattern called 'three falling method' in candlestick terminology. This is a bearish 'continuation' pattern.



This would suggest further weakness in the scrip especially on break below Rs 430/- - in which case it should restart the falling momentum speedily.

I would not be surprised if the stock tests Rs 380 near about levels in the coming few days. !

Happy profit booking !

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.