Berger Paints India forms bearish engulfing candle
The stock of Berger Paints India Limited has formed a bearish engulfing candlestick pattern on the daily timeframe. This pattern is considered to be a bearish reversal pattern and usually occurs at the top of an uptrend.
Among the momentum indicators, the leading indicator, 14-period daily RSI, cooled off after touching the zone of 66 and at present, its reading is 59.94. The daily stochastic has also given a bearish crossover, which indicates a further downside momentum. The RSI is showing a negative divergence on the daily chart, which suggests a limited upside.
Moreover, Ichimoku chart on the 30-minute timeframe is clearly giving a negative view as it closed below the KS and TS lines. Another important aspect is that the TS line crossed under the KS line, which is also a bearish sign.
Going ahead, if the stock sustains below Thursday’s session low of Rs 500 and trades convincingly below this level then, there is a high probability that Thursday’s high point of Rs 527.45 may become a temporary top for the stock.
On Thursday, the stock of Berger Paints India closed at Rs 503.70 per share, dipped by 2.34 per cent. The stock opened at Rs 520 per share and hit an intraday high of Rs 527.45 and a low of Rs 500 per share on NSE.