Evening star in SBIN, can it take stock lower?
SBIN has given a fall of 7% in this week after forming a double top pattern.
An evening star pattern has been formed on the weekly time frame and stock has closed below the 20 ema.
After trading around the ATH stock has given a nice fall and in the last trading session too it has given 3% fall.
Volume indicator also confirms the pattern as the volume of the red candle is higher than the doji candle formed previously.
A short trade can be initiated in the stock once it starts trading below today's week low. The stock can test 550 levels so as there are high chances of froming lower lows lower highs.
The stock may take a halt candle on the daily charts, as it has formed 4 red candle and is trading between both the moving averages.
If the stock retest higher levels before giving another bearish leg, sell positions can be created once there is a negative candle formation near golden ratio of fibonacci series.
Entry :- Below 571, On bearish candle around 600 levels.
Targets :-555, 505
Stop losses should be created on 1:2 or 1:3 basis.
Positional trades can be initiated in the stock as it may take time to test the levels. Next expiry future or options can be sold as August expiry option will take profit due to time decay.
Wait for the price action near the levels before entering the market.
An evening star pattern has been formed on the weekly time frame and stock has closed below the 20 ema.
After trading around the ATH stock has given a nice fall and in the last trading session too it has given 3% fall.
Volume indicator also confirms the pattern as the volume of the red candle is higher than the doji candle formed previously.
A short trade can be initiated in the stock once it starts trading below today's week low. The stock can test 550 levels so as there are high chances of froming lower lows lower highs.
The stock may take a halt candle on the daily charts, as it has formed 4 red candle and is trading between both the moving averages.
If the stock retest higher levels before giving another bearish leg, sell positions can be created once there is a negative candle formation near golden ratio of fibonacci series.
Entry :- Below 571, On bearish candle around 600 levels.
Targets :-555, 505
Stop losses should be created on 1:2 or 1:3 basis.
Positional trades can be initiated in the stock as it may take time to test the levels. Next expiry future or options can be sold as August expiry option will take profit due to time decay.
Wait for the price action near the levels before entering the market.
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