Trend Reversal: Yes Bank share price closes above its 200D SMA

The share price of Yes Bank jumped higher by 15.96 per cent on Thursday. The shares of YES Bank are now trading higher by almost 36 per cent from the 52-week lows. Yes Bank shares are trading lower by nearly 27 per cent from 52 week high, after the recent gains. 

What may excite the bulls in Yes Bank is that the shares of Yes Bank managed to close just above the 200D SMA on Thursday. This development suggests a reversal of long-term trend in Yes Bank, theoretically speaking. 

The steep rise in Yes bank made sure that the stock of Yes Bank is trading above all the important moving averages such as 20D SMA, 50D SMA and 200D SMA. The shares of Yes Bank are up by over 30 per cent in one month alone while in 2021 the stock has delivered negative returns to the tune of 18.28 per cent.

While investors are betting on the stock to cross its 52-week high in 2021, the bullish crossover above the 200D SMA augurs well for the investors. Whether the stock price of Yes Bank will cross its 52-week high is difficult to predict however the bulls should notice that there is some improvement on ground in terms of earnings. The other advantage the investor of Yes Bank have is the sentiment turning positive in banks with Bank Nifty closing at all time highs in Thursday trading session. 

Clearly the stock was oversold and has bounced from its 52-week lows. The huge spike in volume in past 5 trading session where the stock has gained by more than 35 percent will provide bulls an advantage. 

Trend reversal based on the recent price movement in short term and crossing over of share price above the 200D SMA cannot be ruled out. 

Yes Bank can be in your watchlist.