GSK Consumer Healthcare forms bearish engulfing pattern

The stock of Glaxosmithkline Consumer Healthcare Limited forms a bearish engulfing candlestick pattern of the daily time frame. The bearish engulfing candlestick pattern consists of two real bodies of opposite colours. The second day’s body pattern completely engulfs the previous day’s one. A large bearish candle suggests that this is a sudden and decisive shift to bearish sentiment.

Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 60 zone and at present, its reading is 54.34. The daily stochastic has also given a negative crossover, which indicates a further downward momentum.

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 that the KS line crossed under the TS line, which is also a bearish sign. 

Going ahead, if the stock sustains below Wednesday’s low of Rs 9,420.55 and trades convincingly below this level then, there is a high probability of Wednesday’s high point of Rs 10,084.30 becoming a temporary top for the stock.

On Wednesday, the stock of Glaxosmithkline Consumer Healthcare closed at Rs 9,548.55 per share, dipping by 4.49 per cent. The stock opened at Rs 10,029 per share and hit an intraday high of Rs 10,084.30 and a low of Rs 9,420.55 per share on NSE.