Prestige forms dark cloud cover pattern

The stock of Prestige Estate Projects Limited has formed a dark cloud cover candlestick pattern on daily scale. The dark cloud cover is a bearish reversal candlestick pattern, which usually occurs when a bearish candle on day 2 closes below the middle of day 1’s candle. The rejection of the gap up is a bearish sign itself but the retracement into the gains of the previous day's up move adds even a more bearish sentiment.

Among the momentum indicators, the 14-period daily RSI cooled off after touching 76-78 zones and, at present, it is quoting at 61.74. The RSI is trading below its 9-day average and it is in a falling mode, which indicates further downside momentum. The stochastic has also given a negative crossover, which suggests a pause in the uptrend. Moreover, the Ichimoku chart on 30-minute time frame is clearly giving a negative view, as it closed below the KS and TS lines. Another important aspect is the KS line crossed under the TS line, which is also a bearish sign. 

Going ahead, the stock has an immediate support in the zone of Rs 370-Rs 360, as it is the confluence of horizontal trendline support and short-term moving averages i.e. 8-day EMA and 13-day EMA. While on the upside, Monday’s high of Rs 426 will be a major hurdle for the stock.

On Tuesday, the stock of Prestige Estate Projects closed at Rs 381.75 per share, dipped by 8.02 per cent. The stock opened at Rs 419.70 per share and hit an intraday high of Rs 419.70 and a low of Rs 380.10 per share on BSE.