Investors with a short-term perspective can consider selling the stock of UCO Bank at current levels. After an accelerated rally from ₹75, the stock encountered resistance at ₹115 on Monday. On that session, the stock fell over 5 per cent with good volume forming a bearish engulfing candlestick pattern on the daily chart implying a short-term trend reversal. This reversal is backed by negative divergence in daily relative strength index which also indicates change in trend.
Other indicators on the daily chart are hovering in the overbought levels which point to near-term correction. The stock is reversing lower from the daily Bollinger Bands after reaching the overbought levels within this band.
Traders can sell the stock at current level with a stop-loss at ₹107.5. In the short-term the stock can decline and reach the price target of ₹100.5 and then ₹ 98.5 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)