Selling spree continues for Vakrangee, a trend reversal

Bhagyashree Vivarekar
/ Categories: Trending, Markets

A technology company engaged in e-governance projects, Vakrangee, is on a selling spree in the markets since January 29. The free fall in the company's stock price was in the wake of possible investigation by SEBI for suspected share price and volume manipulation. Thereby the stock has witnessed tremendous sell-off of nearly 49 per cent, after it hit 52-week and all-time high at 515.40 on January 24.

Considering the daily time frame, the stock formed a kind of Shooting Star pattern, which is a bearish reversal pattern on January 24. Share price was off its all-time high after four consecutive positive trading sessions. Now the stock has fallen for four consecutive sessions washing off all gains since November 10, 2017. The fall was supported by oscillators' negative crossover in the over-bought zone. Further, the reversal was confirmed by rising volumes which gave negative divergence.

Now the oscillators are lying in the oversold zone, while volumes too have started declining. With this going forward, the stock may bounce back from the current levels at least up to the gap-filling level of 292. Going forward, the stock may see 323 followed by 360 in the first place. If not the stock has a major support at 258 followed by 239 levels directly.

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