IRB Infrastructure Developers form Tri-Star pattern

The stock of IRB Infrastructure Developers Limited has formed a bearish Tri-Star candlestick pattern on the daily time frame. This is an extremely rare pattern and usually occurs at the top of an uptrend.

The bearish Tri-Star pattern is made up of three Doji days, with the middle day being a star. The first Doji would cause a considerable concern while, the second Doji would indicate that there was no direction left in the market. And finally, the third Doji would put the final nail in the coffin of the trend. Since this indicates too much indecision, everyone with any conviction would be reversing positions.

Among the momentum indicators, the leading indicator, 14-period daily RSI, cooled off after touching the zone of 65 and at present, its reading is 61.26. The daily stochastic has given a bearish crossover, which indicates a downside momentum. Moreover, a negative divergence was also spotted at the daily time frame on the stochastic, which indicates a limited upside.

Going ahead, the stock has an immediate support in the zone of Rs 74-Rs 72. While on the upside, Monday’s high of Rs 84.80 will be a major hurdle for the stock.

On Tuesday, the stock of IRB Infrastructure Developers closed at Rs 78.15 per share, dipped by 4.05 per cent. The stock opened at Rs 77.60 per share and hit an intraday high of Rs 79.85 and a low of Rs 76.30 per share on NSE.