SBIN –State Bank of India Technical Analysis

SBIN as on 26 April’13 – 2287.95

SBIN as on 26 April’13 – 2287.95

On last Wednesday only I become little skeptical about Bank Nifty performance (click here to view Wednesday’s post), but some how due to holiday and global peers were high, it opened Gap up and on next day it gave away some gains. But, integral part Bank Nifty, SBIN was not performing at par. In the last session, SBIN gave one weak close.

If you see attached chart, than SBIN is finding resistance from 61.8% (2340) Fibonacci Retracement of last down leg from high of 2555 to low of 1979.50. Almost from last four trading sessions SBIN is struggling to move above this level, and finally yesterday it gave up.

Look at RSI (14) it also bended down towards 60 level, which indicates loosing steam from the counter.

(To view latest Bank Nifty Trading Strategy click here)

SBIN – Technical Trading Strategy.

From above observation it is evident, weakness is setting in, but still there is a risk involved in going short. It has some important supports in between. If you are risk takers, than follow this strategy, if SBIN opens below 2280 take one short position with stop loss of 2340, and look for next move, whether it holds above 2240 or not. If you think it holds above 2240 than better to exit at whatever small profit you get, but if SBIN moves below 2240 than immediate target comes near 2190.


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