Yes Bank

We recommend a sell on Yes Bank from a short-term trading perspective. It is apparent from the chart of Yes Bank that after bottoming in early March around Rs 41, it began to trend upward. The stock’s uptrend accelerated in early April and it witnessed a sharp up move. However, at Rs 86, the stock encountered resistance in early May and reversed direction triggered by the negative divergence displayed in the daily relative strength index (RSI). Moreover, we notice that the stock has formed a rising wedge, a bearish pattern, spanning over the past three weeks. On May 11, the stock tumbled almost 5 per cent breaking down from the rising wedge pattern. The daily RSI has entered the neutral region from the bullish zone. The daily moving average convergence and divergence indicator is signalling a sell. We are bearish on the stock from a short-term perspective. We anticipate the stock to decline further until it hits our price target of Rs 69 in the forthcoming sessions. Traders with short-term trading perspective can sell the stock while maintaining a stop-loss at Rs 81.

via BL