Friends if we see and compare large-cap stocks then many have recovered after big fall except banking stocks. The simple way for cross verifying is Nifty and Banknifty, nifty is trading above its 200 MA and Banknifty still trading below or too far.
SBI Bank is one of the best domestic bank and having good fundamentals. Let's see a chart analysis of it.
Technical Overview of the monthly chart: In the month of March while COVID starting SBI has broken its important monthly support of 230. Next month It has to spend the whole time between 198 to 175 and then again a fresh fall from month May. Finally from June market has stopped to react on COVID news & crisis and at the same time, SBI bank has taken support from month support i.e. 150. Now next resistance is around 230 and stock is showing gradual positive strength.
Weekly chart: As on weekly chart Inverted H&S has formed, it is the strong signal of a trend change. We are waiting for a breakout confirmation with good volume. As per H&S, our target will be 250. In last to last week stock price has crossed the resistance but not closed above. Let's wait patiently or you can add some quantities before the breakout.
Daily chart: On smaller time frame stock is trading in a Bullish Ascending Triangle and on 12th August stock has given breakout to a triangle with double volume. In last week the price has retested its trend line support plus 20 MA. Stock is continuously taking support from 20 MA and ready to touch 200 MA.
As per our studies stock is ready to fly and we are expecting 230/250 levels.
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----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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ReplyDeleteNice Article. Thank you for sharing the informative article with us.
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