Bharat Finance forms one white soldier pattern

The stock of Bharat Financial Inclusion Ltd forms one white soldier pattern on the weekly time frame. The one White Soldier pattern is considered to be a bullish reversal pattern and usually occurs at the bottom of a downtrend.

The one white soldier pattern starts with a long black candle. The second candle is a long white candle that opens at or above the previous candles close and the closes near the high of the candle, ending above the high of the previous candle. It depicts emotionally, the downtrend has been damaged. If the following day's prices continue higher, a major reversal of the downtrend has occurred.

The stock is currently trading above its weekly pivot and long and short-term moving averages. Among the momentum indicators, the 14-period day RSI is currently quoting at 59.69 and it is trading above its 9-day average, which indicates further upward momentum. The fast stochastic is also trading above its slow stochastic line. Moreover, the daily MACD stays positive as it is trading above zero line for the last three trading sessions. 

Going ahead, the stock has immediate support in the zone of Rs. 1,010-995 as 100-day EMA and 200-day EMA is placed in that region while the 50-day EMA is likely to act as major support, which is currently placed at Rs. 985 level. On the higher side, any sustainable move above the level of Rs. 1,040 is likely to open up gates for further rally towards levels of Rs. 1,100, followed by Rs 1,140.

On Friday, the stock of Bharat Financial Inclusion closed at Rs. 1,032.55 per share, surged by 3.07 per cent. The stock opened at Rs. 1,012.90 per share and hit an intraday high of Rs. 1,035.80 and a low of Rs. 1,005.80 per share on BSE.