The stock of HDFC Bank Ltd has formed a three inside up candlestick pattern on the daily scale. The three inside up pattern is representing the confirmation of the bullish harami pattern, which shows the success of the forecast.
In this pattern, the first candle is a long bearish candle, which closes near its low. The second candle is a small bullish candle, which gaps up from the first candle and closes inside the body of the first candle thus, creating a harami pattern. The third candle exceeds the high of the first two candles.
Along with this bullish formation, the stock has also managed to close above its weekly pivot and short-term moving average, i.e. 20-day EMA and 50-day EMA. Interestingly, the stock is on the verge of giving a ‘golden crossover’, which is a long-term bullish sign. In technical parlance, the golden crossover occurs when a short-term 50-day simple moving average crosses above the long-term 200-day simple moving average on any index or stock.
Among the momentum indicators, the 14-period daily RSI took support near the zone of 35-40 many times and this time also, it bounced exactly from the same level. Currently, the daily RSI is trading above its 9-day average line. Moreover, the daily stochastic oscillator is also suggesting some bullish strength as per cent K is above the per cent D.
Going ahead, the 100-day EMA is likely to act as immediate support for the stock, which is currently placed at Rs 1,071.60 level, while the major support is placed in the zone of Rs 1,052-Rs 1,045 as upward sloping trendline support is placed in this region. On the upside, the level of Rs 1,110 will be the immediate hurdle for the stock, which is 61.8 per cent Fibonacci retracement level of its prior downward move (Rs 1,145.95- Rs 1,052.35).
On Wednesday, the stock of HDFC Bank closed at Rs 1,093.65 per share, surged by 2.16 per cent. The stock opened at Rs 1,070.20 per share and hit an intraday high of Rs 1,096 and a low of Rs 1,068.35 per share on NSE.