Bank of Baroda forms dark cloud cover pattern

Bank of Baroda forms dark cloud cover pattern

Vinayak Gangule
/ Categories: Trending

The stock of Bank of Baroda has given a downward sloping trendline breakout as of December 21, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. The stock has gained nearly 43 per cent upside in just 37 trading sessions.   

However, on Thursday, the stock has formed a dark cloud cover candlestick pattern on the daily chart. The dark cloud cover is a bearish reversal candlestick pattern, which usually occurs at the top of an uptrend.  

Among the momentum indicators, the 14-period daily RSI cooled off after touching the zones of 75-78 and at present, it is quoting at 57.80. The RSI is trading below its nine-day average and it is in a falling mode, which indicates a further downside momentum. The stochastic has also given a bearish crossover.   

Moreover, Ichimoku chart on the 30-minute timeframe is clearly giving a negative view, as it closed below the KS & TS lines. Another important aspect is that the KS line crossed under the TS line, which is also a bearish sign.  

Going ahead, if the stock slips below Thursday's session low of Rs 75.15 and trades convincingly below this level, then there is a high probability that Thursday’s high point of Rs 80.80 would become a temporary top for the stock. 

Previous Article Volatility likely to be hallmark of today's trade, stay cautious!
Next Article What Reliance Industries option chain indicates ahead of earning?
Rate this article:
4.0

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR