The outlook is bearish for Union Bank of India. The 4 per cent fall on Monday has dragged the share price well below the key support level of ₹119. This marks the end of the consolidation phase that was in place since August this year. It also indicates that the broader downtrend has resumed.
The price action since June has been in the form of a bear channels. The chances are high for Union Bank of India share price to fall towards 105 – the lower end of the channel. Traders can go short now at ₹114. Add more shorts at ₹117. Keep the stop-loss at ₹120. Trail the stop-loss down to ₹112 as soon as the stock falls to ₹110. Move the stop-loss further down to ₹110 when the price touches ₹108. Exit the shorts at ₹106.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)