SBI Life may need life support.
4.10.2023
SBI Life (Spot) (Daily chart): 1270
After hitting a low around 1080 in March 2023 this stock rallied to hit a top at 1390 in September 2023.
On 19th September 2023 an evening star pattern was seen on the chart and since then this stock has been falling.
A straight fall for trading sessions from 18th September (1390) to 26th September (1285) is clearly seen on the chart, post that the stock consolidated for 4 trading sessions in a small range (1285 to 1320). The above fall and consolidation have formed a flag pattern on the chart.
A breakdown is seen below the consolidation range 4.10.2023 marking a flag pattern breakdown. The target for flag pattern will be 1180
At the Same time we can also see a larger M-pattern forming on the charts. A break below 1250 will trigger the M-Pattern breakdown for the target of 1140.
The Blue trendline which this stock was respecting for over 6 months is also broken.
Taking in consideration all the above observations this stock seems to be headed south.
Strategy 1 (Only for knowledge purpose): Sell This stock on rise to 1280 keep stoploss above 1320 for target of 1180 and 1140.
OR
Strategy (Only for knowledge purpose): Sell this stock on close below 1250 with stoploss at 1290 and target at 1130.
Second strategy will have higher probability compared to the 1st strategy.
Analyst: Abhay Bhatia
4.10.2023
SBI Life (Spot) (Daily chart): 1270
After hitting a low around 1080 in March 2023 this stock rallied to hit a top at 1390 in September 2023.
On 19th September 2023 an evening star pattern was seen on the chart and since then this stock has been falling.
A straight fall for trading sessions from 18th September (1390) to 26th September (1285) is clearly seen on the chart, post that the stock consolidated for 4 trading sessions in a small range (1285 to 1320). The above fall and consolidation have formed a flag pattern on the chart.
A breakdown is seen below the consolidation range 4.10.2023 marking a flag pattern breakdown. The target for flag pattern will be 1180
At the Same time we can also see a larger M-pattern forming on the charts. A break below 1250 will trigger the M-Pattern breakdown for the target of 1140.
The Blue trendline which this stock was respecting for over 6 months is also broken.
Taking in consideration all the above observations this stock seems to be headed south.
Strategy 1 (Only for knowledge purpose): Sell This stock on rise to 1280 keep stoploss above 1320 for target of 1180 and 1140.
OR
Strategy (Only for knowledge purpose): Sell this stock on close below 1250 with stoploss at 1290 and target at 1130.
Second strategy will have higher probability compared to the 1st strategy.
Analyst: Abhay Bhatia