United Spirits forms bearish engulfing candle
The stock of United Spirits Limited has formed a bearish engulfing candle on the daily time frame. The Bearish engulfing candlestick 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 RSI is currently quoting at 53.34 and it is trading below its 9-day average. The daily MACD stays bearish as it is trading below the zero line. The fast stochastic line is also trading below the slow stochastic line. Moreover, there has been a negative divergence between the daily RSI, daily stochastic and the stock price movement, which suggests limited upside.
Going ahead, if the stock slips below Friday’s session low of Rs. 577.80 and trades convincingly below this level, then there is a high probability that Thursday's high point of Rs. 609.50 would become a temporary top for the stock.
On Friday, the stock of United Spirits closed at Rs. 582.80 per share, dipping by 3.17 per cent. The stock opened at Rs. 604.20 per share and hit an intraday high of Rs. 607.70 and a low of Rs. 577.80 per share on NSE.