• The attached weekly timeframe chart of this technology stock (KPIT Technologies Ltd) is indicating completion of its fine upmove of the last couple of months.
• After a sharp upmove since last month, the stock price has reversed down swiftly in last week and closed near the low. This could be an indication of a formation of key down reversal pattern for near term.
• We observe strong resistance of intermediate down trend (brown dashed trend line) around Rs.167 levels, which was broken on the upside initially in previous week, but the stock price was not able to sustain above it as per the closing of last week.
• This pattern of false upside breakout could be negative indication for this stock price and one may expect further weakness in the stock price for near term.
• We also observe consistent lower top formations over the last many months and the previous lower tops have resulted in a sharp declines, after the confirmation of reversals. Hence, one may expect continuation of weakness in the stock price for coming weeks.
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• Recommendation: Overall negative chart set up in KPIT Technologies Ltd is indicating a near term sell trading opportunity. One may look to create sell positions as per the levels mentioned above.