HDFC AMC forms Shooting Star candlestick pattern

The stock of HDFC Asset Management Company Limited forms Shooting Star candlestick pattern on weekly time frame. The Shooting Star candlestick formation is viewed as a bearish reversal candlestick pattern that typically occurs at the top of an uptrend. The long upper shadow of the Shooting Star implies that the market tested to find where the resistance and supply were located.

Among the momentum indicators, the 14-period daily RSI is currently quoting at 63.31 and it is trading below its 9-day average. The daily MACD stays bearish as it is trading below its zero line. The stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Moreover, the negative divergence is clearly visible between daily RSI, daily stochastic and stock price movement, which suggests limited upside.

Going ahead, in case stock sustains below the level of Rs. 2777.70, it would invite further selling and may test the low of Rs. 2550, registered on September 19, 2019. On the other hand, it is advisable to wait till the stock moves above the Rs. 2975 mark to create any long positions in the stock.

On Friday, the stock of HDFC Asset Management Company closed at Rs. 2800 per share, down by 1.70 per cent. The stock opened at Rs. 2855.10 per share and hit an intraday high of Rs. 2878 and a low of Rs. 2777.70 per share on NSE.