Nov 222010

For the first time in since March 09, Axis Bank has clocked a lower high, lower low pattern. This is shown in the chart below.

Axis Bank - Daily Charts

Also visible on the charts, is the break of an important trendline and 100 day exponential MA. The green circles on the chart highlights how these levels acted as supports during prior declines.  A breach of these levels along with a lower low, lower high pattern is a clear warning signal that the risk has grown for those holding longs. Ideally, I will look to enter short positions on a small rise.

A similar breach is visible on BPCL (no trendlines though).

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