ICICI Bank forms Shooting star candlestick pattern

The stock of ICICI Bank Limited has formed a shooting Star candlestick pattern on the weekly time frame. The shooting Star candlestick formation is viewed as a bearish reversal candlestick pattern, which typically occurs at the top of an uptrend. The long upper shadow of the shooting star implies that the market is being tested to find out where the resistance and supply were located.

Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 70 zone and, at present, its reading is 60. The RSI is trading below its 9-day average and it is in the falling mode, which indicates further downside momentum. The stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Moreover, a negative divergence was also spotted at the daily time frame on the RSI, which indicates a limited upside.

The Ichimoku chart on 60-minute time frame is clearly giving a negative view as it closed below the KS and TS lines. Another important aspect is that the KS line crossed under the TS line, which is also a bearish sign. 

Going ahead, in case the stock sustains below the level of Rs. 460, it would invite further selling and may test the low of Rs. 437.55, registered on October 22, 2019. On the other hand, it is advisable to wait till the stock moves above the Rs. 482 mark to create any long positions in the stock.