Adani Enterprises forms evening doji star pattern

The stock of Adani Enterprises Limited forms evening doji star candlestick pattern on the weekly time frame. The evening doji star is a reversal candlestick pattern which is bearish in nature and appears at the end of an uptrend. It is a complex pattern made of three candles, the first candle is bullish in nature, the second is indecisive and the third one is bearish in nature.

Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 13-day EMA, 20-day EMA and 50-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 78-zone and, at present, its reading is 35.30. The RSI is trading below its nine-day average and it is in falling mode, which indicates a further downside momentum. The daily and weekly MACD stays bearish as it is trading below its zero line.

Going ahead, if the stock sustains below Friday’s session low of Rs 217 and trades convincingly below this level then, there is a higher probability that the previous week’s high point of Rs 261 would become a temporary top for the stock. 

On Friday, the stock of Adani Enterprises closed at Rs 217.50 per share, dipped by 7.11 per cent. The stock opened at Rs 221 per share and hit an intraday high of Rs 226.80 and a low of Rs 217 per share on NSE.