PFC trades near weekly resistance zone

Power Finance Corporation witnessed fierce sell-off of 6.03 per cent from its strong weekly downward sloping trend line resistance zone, on Friday. Considering the monthly time frame chart, in July 2018 stock formed a sizable bullish candle near its previous support zone of Rs. 65-70 and bounced 60.80 per cent from low.

PFC resisted near its 200-week exponential moving average which is Rs. 107.30 and this coincides with the weekly major downward sloping trend line resistance zone. The 14-period day RSI is recently given negative crossover near its daily overbought zone which predicts downside momentum for the short-term. Other daily momentum indicators and oscillators are also in overbought zone.

In the coming weeks, a closing of above the trend line resistance zone Rs. 110-115 may give rise to new uptrend. But if the stock is unable to close above resistance zone, then we may witness more sell-off in PFC.