The stock of Union Bank of India fell more than 4 per cent on Monday, breaching a key support at Rs.155. Investors with a short-term perspective can sell the stock at current levels. Since encountering a key resistance at around Rs.250 in late January, the stock has been on a medium-term downtrend. Following a corrective rally, the stock met with resistance at Rs.175 and resumed its downtrend that intensified recently.
The relative strength index on the daily chart has entered the bearish zone from the neutral region. The weekly RSI has re-entered the bearish zone backing the medium-term downtrend. The stock trades well below its 50- and 200-day moving averages. Both the daily and weekly price rate of change indicators are featuring in the bearish zone indicating selling interest. The short-term outlook of the stock is bearish. Sell the stock with a stop-loss at Rs.151.5. The targets are Rs.141.5 and Rs..138.5.
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