SBI: Head and Shoulder, Neo Triangle

SBI was forming a topping process from the month of August 2016 till November 2016. The topping process ended in a head and shoulder formation supported by volume. The left shoulder was accompanied by heavy volume but as the pattern started forming the volume receded. The level of 245- from where prices have bounced couple of times was breached, giving an indication the lower tops are in place. Short term moving averages have given a bearish crossover which supports my above mention view.

As per wave analysis, prices formed a extracting triangle at the top and then moved down thereby ending wave y at the top. One complex correction was ended from the bottom to top and now its correction will start on the downside.

As far as prices don't move above level of 256, the bias will remain negative for this banking stock. According to H&S pattern, prices can touch the level of 220.

SBI Daily Chart

Disclaimer: The above content is not for trading perspective. Please don't use this excerpt for trading. The intention is to make awareness about the forecasting techniques and implementation of Wave theory.

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