Technical Analysis

SBI is in a short-term downtrend

Yoganand D | Updated on January 24, 2018 Published on March 29, 2015

Last week, the stock tumbled 5.3 per cent, breaching a key support at ₹280 and the 200-day moving average as well. This fall has strengthened the stock’s short-term downtrend that has been in place from the January peak of ₹335. However, Friday’s 2.6 per cent gain appears to be a corrective move up. The stock can encounter resistance at ₹270 or else at ₹277 in the near term and resume its downtrend thereafter. Hence, traders with a short-term perspective should tread with caution and initiate short position on such resumption with a stop-loss at ₹280. A decline below the immediate support at ₹257 can pull the stock down to ₹250 in the coming week. Next key supports are at ₹240 and ₹235. On the other hand, an emphatic rally beyond ₹277 can extend the rally to ₹285 or ₹295 levels. The short-term downtrend remains in place as long as the stock trades below ₹300 levels.



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