Keep Axis Bank on your radar!

Axis Bank rallied almost 500 points since March 2020. It further entered into a consolidation phase forming an interesting price chart pattern. Read on to find out more.  

Post the fall in March 2020, Bank Nifty made a comeback stupendously by rallying almost 23,900 points or 148%. As a matter of fact, its trend seems to be very much bullish. Even Axis Bank, having a weightage of 12.36% in Bank Nifty, has also rallied similarly. Presently, it is consolidating in a range-bound trade forming an interesting price action chart pattern. It is forming a bullish pennant pattern.

A bullish pennant pattern is a continuation chart pattern, which is usually witnessed when a stock experiences a large upward movement, followed by a brief consolidation, before continuing its northward journey. Remember, to complete this pattern, the price needs to break out from the upper slope of the triangle with higher volumes.

Though Axis Bank is forming a bullish pennant pattern, it is incomplete. This is because it hasn’t yet broken out from the consolidation. Having said that, it indeed makes sense to keep it on your radar and watch its price action. A breakout from the consolidation likely suggests a continuation of the trend.

The Relative Strength Index (RSI) is currently at 51. Presently, it is not indicating any strength but do watch out for RSI of 65 and above. Even though the Moving Average Convergence and Divergence (MACD) is in the positive territory, is neutral.

Today, Axis Bank opened at 807.95 level, marking a high and low at 810.75 and 792.30 level, respectively. At the time of writing, the stock was trading at 795.