Will Dark Cloud Cover show its Power?
The counter has been in a downtrend for the last few weeks. During recent past it formed a base around 570 levels and started its northward journey and kissed 622 levels where its 20 DMA is placed. It witnessed gap up opening just a couple of sessions ago but bulls failed to capitalize the move.
The counter has formed a Dark Cloud Cover Candlestick pattern on a daily chart. As mentioned it failed to cross its short term moving averages and witnessed reversal. On weekly chart too it has found resistance around its 50 WMA. Though the momentum indicators are looking moderately bullish looking at the current chart pattern it seems that the counter may remain under pressure in sessions ahead.
Short Position can be initiated around 605-607 levels with closing SL of 620 TGT 590-585 in a short term.