Technical Bits: Bajaj Finserv forms sizeable bullish candle

Bajaj Finserv Limited is currently trading at Rs. 6,384.55. Considering the daily time frame, the stock has given a bounce from the edge of the upward sloping trendline formed by joining swing lows from October 24, 2018. Additionally, the stock formed a sizeable bullish candle which suggests bulls are taking control near the support zone. 

On Monday, the stock managed to close above its short-term moving average, i.e. 21-day Exponential moving average, which is positive for the stock. However, the 14-period RSI is quoting around 54.12, but still, it is trading below its 9-day average. Considering daily time frame, the fast-stochastic line is still trading below its slow stochastic line, which suggests a reversal is yet to be confirmed.

In the near term, Rs. 6,550 level will be the crucial resistance for the stock. A follow-through move above this level would lead to an extension of the pull-back toward Rs. 6,700; followed by Rs. 6,800. While on the downside, the level of Rs. 6,200 will be the immediate support, failure to hold this support would lead to further correction up to the level of Rs. 6,050.