United Spirits form dark cloud cover pattern
The stock of United Spirits Limited has formed a dark cloud cover candlestick pattern on the daily timeframe. The dark cloud cover is a bearish reversal candlestick pattern, which usually occurs when a bearish candle on the second day closes below the middle of first day’s candle. The rejection of the gap-up is a bearish sign in itself but the retracement into the gains of the previous day's upmove adds even a more bearish sentiment.
Going ahead, if the stock slips below Friday’s session low of Rs 584.15 and trades convincingly below this level, then there is a high probability that Thursday’s high point of Rs 615.75 would become a temporary top for the stock. Among the momentum indicators, the 14-period daily RSI cooled off after touching 70 level and at present, it is quoting at 63.23.
Moreover, Ichimoku chart on the 30-minute timeframe is clearly giving a negative view, as it closed below the KS and TS lines. Another important aspect is that the KS line crossed under the TS line, which is also a bearish sign.
On Friday, the stock of United Spirits closed at Rs 588.40 per share, dipped by 3.53 per cent. The stock opened at Rs 611 per share and hit an intraday high of Rs 613.55 and a low of Rs 584.15 per share on NSE.