Bajaj Auto - Negative Breakout

Bajaj Auto has just broken one more trend line at 2587. Not a good sign considering the movement of the index.

• MACD is still in negative zone but the column bars are reducing, showing some possible sign of a reversal of fortune
• RSI is in a near buy zone for this stock. However, largely this is the effect of the recent continuous downtrend in the stock price.
• There has been some really heavy selling in this stock. The stocks volume has just increased over a period of time. This can be seen in the Accumulation Distribution chart.

What is need to looked at will be the support level that the stock has seen over the past few days being broken convincingly. If it is not supported with strong volumes from here, there could be a possible reversal in the stock. The stock from here, if the current support level is broken can fall to 2400. Now that is a possible 8% downside on the stock from current prices. However, on the upside this is limited only to 4%. Hence, given the higher probability of a downside, I would wait and definitely watch the movement in the stock.