Technical Pick – State Bank of India
• State Bank of India is finding support at 285 and resistance above 300.
•On Daily chart, SBI is showing breakout point above 300.Break and sustain above 300 will see nonstop rally in SBI till 314--325++ in weeks to come.
• State Bank of India has been trading in a broader range of 223--315 for last one year.
• Daily 14 period RSI has turned up from near levels. As per the bullish high low theory of 40-70 levels, the daily RSI is expected to move up to 70- 75 levels from the current reading of 66. This could mean Continuation of upside momentum in the stock price ahead possibly a breakout also this time.
• Traders don’t go for aggressive or positional selling at all because trend looks positive and we expect rally to remain continue till 314--325+++mark in coming weeks. For positional trade, stop loss seeing below 285 on closing basis which in unlikely to breach in near terms.
Trading Recommendation
Buy SBI above 300 and for the initial upside target of 314—325++ mark with stop loss below 285 on closing basis.
More will update soon!!
