Technical Talk: Bank of Baroda forms an Evening Doji Star pattern

On Wednesday, the stock of Bank of Baroda closed at Rs. 100.70 per share, dipped by 5.31 per cent.

The stock of Bank of Baroda has given a downward sloping trendline breakout as of October 08, 2021. Thereafter, it has gained over 24 per cent in just 21 trading sessions.

On Wednesday, the stock has formed an Evening Doji Star candlestick pattern on the daily time frame. Evening Doji Star is a reversal candlestick pattern that is bearish in nature and appears at the end of an uptrend. It is a complex pattern made of three candles, the first candle is bullish, the second is indecisive and the third candle is bearish.

Along with this bearish formation, the stock has also managed to close below its weekly pivot and short term moving average, i.e. 8-day EMA. Among the momentum indicators, the 14-period daily RSI cooled off after touching 72-zone and, at present, its reading is 59.44. The RSI is trading below its 9-day average and is in a declining mode, which indicates further downside momentum. The stochastic oscillator has also given a bearish crossover. Moreover, a negative divergence was also spotted at the daily time frame on the 14-period RSI. A negative divergence occurs when the price is making a higher high, while the RSI forms a lower high.

Going ahead, if the stock sustains below Wednesday’s session low of Rs 99.25 and trades convincingly below this level, then there is a high probability that Wednesday’s high point of Rs. 108 would become a temporary top for the stock.  

On Wednesday, the stock of Bank of Baroda closed at Rs. 100.70 per share, dipped by 5.31 per cent. The stock opened at Rs. 105.30 per share and hit an intraday high of Rs. 108 and a low of Rs. 99.25 per share on NSE.