According to the weekly chart of YES Bank, a significant bottom reversal pattern such as rounding bottom is being formed. Currently, YES Bank is witnessing an upside breakout from the rounding toping pattern
YES Bank has seen an increase in volume during the upside breakout of the stock price. The weekly and monthly 14-period RSI have shown positive signs.
Technical charts suggest that shares of YES bank could reach Rs 25 in the medium-term. In Tuesday’s opening trade, the scrip reached Rs 22. The stock price has recently seen a decisive upward breakout after displaying a range bound, positive bias action over the past month.
The scrip rose 5% on Tuesday to reach a new 52-week high at Rs 22.10 per piece. The scrip has risen 27% in just four days.
According to Nagaraj Shetti (Technical Research Analyst at HDFC Securities), the stock price is showing a significant bottom reversal pattern such as rounding bottom. The current upside breakout of this pattern is being witnessed.
He said that the sharp upward breakout of multi-monthly down sloping trend line resistance has occurred on the monthly timeframe.
span style=”background color: transparent The volume has increased during upside breakout of the stock price. Both the weekly and monthly 14 period RSI have shown positive indication. The medium-term trend in YES Bank is expected to continue. The next upside targets should be around Rs 25 or Rs 31, which could be reached in the next 3-5 month. Shetti stated that any downturn to Rs 19.50 could be an opportunity to buy on dips in the near-term.
Swastika Investmart Senior Technical Analyst Pravesh Gour noted that YES Bank stock trades above the majority of moving averages, and that momentum indicator Relative Strength Index (RSI), is also positive poised. MACD (moving Average Convergence Divergence) is however supporting the current strength.
The stock is expected to reach Rs 24 in the near future, according to this analyst. He said that Rs 17.50, the strong support, is on the lower end.
Osho Krishan (Senior Analyst for Technical & Derivative Research, Angel One) stated that support has shifted upwards towards Rs 18-18.50 levels. Analyst Osho Krishan expects that the northward rally in the counter will continue in a gradual manner.
Recent news about the stock was that Verventa Holdings and CA Basque Investments received conditional approval from the RBI. Each investor was granted approval by the central bank for the acquisition of up to 99.99 percent of the bank’s share capital through subscriptions to equity shares or share warrants.