Thursday, June 13, 2019

YES BANK- How far will it fall? Classic moving average concept!

Yes bank has been a major laggard in the banking space since a long time. Post testing the high of 400 in October 2018, the stock has been moving in a downtrend without any signs of recovery. We were able to capture today’s fall using two EMAs.
 Moving averages are a great way to gauge the trend and they effectively show expected support and resistance levels. The exponential moving average is sensitive to recent price changes and one can get the idea of the strength of a trend by looking at the slope of the moving average.
Below is the chart with detailed analysis published in our daily report- “The Financial Waves short term update”
 Yes Bank Daily chart: (Anticipated as on 12th June)
Yes Bank 15 mins chart: (Happened as on 13th June)
Anticipated as on 12th May- On the daily chart we can see the stock making a move towards the lower trendline of the downward slopping channel. We have shown the 5 Day and the 20 Day EMA which has proved to be a very useful tool to get onboard the trend during a trending move. Whenever 5 days EMA moved below the 20 days EMA we have seen a strong trending move on downside. Now the 5 days EMA has again came close to 20 days EMA. Break of the support near 132 will provide a good opportunity to enter on the short side in this ongoing down move. We are currently moving in the form of wave c of the corrective pattern.
In short the trend for Yes bank seems to be sideways to negative, with the immediate support zone placed at 132 and the resistance is placed near the 145-150 level. Move below 132 will resume the down move towards the 125 and 120 eventually.
Happened as on 13th June- Prices moved exactly as expected and post testing the 5 days EMA; the stock broke its important support of 132 on closing basis & moved lower to form another 52 weeks low near 117.40 levels.
The above analysis clearly shows how well Elliott wave and simple techniques like Moving average crossover can be combined together. Get access to the daily equity research report & capture good trading opportunity over short term “The Financial Waves short term update”- Get access here
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