There has been a series of 20% drops and gains over the past 6 months.
So, will history repeat itself? Is the PSU Banks Index headed for some gains?
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As can be seen from the chart above, the bulls have rescued at ~20% drop and this is the third time the bulls have taken the chance.
The recent consolidation and reversal in momentum confirm that history is repeating itself.
The breakout, retest and bullish momentum suggest that the recent low of 2,391 could be a short-term bottom for the index.
The Moving Average Convergence Divergence (MACD) in the table below confirms the bottom as a positive crossover of the moving averages and the trend histogram above the integer line is indicative of a bullish phase.
The bulls should accumulate shares of PSU Bank in the short term.
Considering the previous increase, 2,800-2,900 could be on the cards in the coming months.
Currently, the Nifty PSU Bank index is trading at 2,565, down 0.8%.
Yesterday, I also shared an update on the Bank Nifty index and how to get opportunities for traders.
I will be sharing more of his trends on my Telegram group. If you are interested in being a part of my charting journey as I share how to create wealth from profitable trading setups, join my telegram channel – Daily Quick Profit.
Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such.
This article is provided by Equitymaster.com
