Bank of Baroda forms dark cloud cover pattern
The stock of Bank of Baroda has given a downward sloping trendline breakout as of December 21, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. The stock has gained nearly 43 per cent upside in just 37 trading sessions.
However, on Thursday, the stock has formed a dark cloud cover candlestick pattern on the daily chart. The dark cloud cover is a bearish reversal candlestick pattern, which usually occurs at the top of an uptrend.
Among the momentum indicators, the 14-period daily RSI cooled off after touching the zones of 75-78 and at present, it is quoting at 57.80. The RSI is trading below its nine-day average and it is in a falling mode, which indicates a further downside momentum. The stochastic has also given a bearish crossover.
Moreover, Ichimoku chart on the 30-minute timeframe is clearly giving a negative view, as it closed below the KS & TS lines. Another important aspect is that the KS line crossed under the TS line, which is also a bearish sign.
Going ahead, if the stock slips below Thursday's session low of Rs 75.15 and trades convincingly below this level, then there is a high probability that Thursday’s high point of Rs 80.80 would become a temporary top for the stock.