SBI remains in a indecisive mode
In the week ago SBI was volatile and fell just 1.5 per cent. The stock has been testing its 50- and 200-day moving average lines over the past five trading sessions. Moreover, there is a formation of a spinning top candlestick pattern in the weekly chart implying indecisiveness.
Hence, traders with a short-term perspective should tread with caution as long as the stock moves sideways in the band between Rs.274 and Rs.285. However, on the upside, the stock has another significant resistance ahead at Rs.290.
A decisive breakthrough of Rs.290 level is required to reinforce the bullish momentum and take the stock higher to Rs.300 and Rs.310 in the short term.
Strong plunge below the immediate support level of Rs.274 can add selling pressure and pull the stock down to Rs.270 and then to Rs.260. In that scenario, initiate short position with a stop-loss at Rs.280.
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