These Twelve Stocks Are Flashing Signs of Weakness Near Ten-WMA

Posted Date: March 19 2021

Sbi Cards

Sbi Cards broke out of a 11-week, 17% deep Consolidation Base 10 weeks ago. However, the stock failed to make meaningful progress.

The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

This week, Sbi Cards stock sliced through the 10-week moving average line. The stock closed -3.6% down on 194% higher volume than 10-week average. The current price is -3.4% below the 10-week moving average.

The long term support line, 40-week moving average is still in uptrend. The stock is trading around 14.7% above the 40-week moving average.

A closing below the 10-week moving average on heavy volume should be considered as a weakness in a stock, at least for the short to intermediate term.

At this point, you should step back and look at your profit cushion on the position. If you do not have enough profit, from a risk management standpoint, you may want to cut the position. If you have enough profit, you can take at least partial profits.

Hdfc Life Insurance 

Hdfc Life Insurance broke out of a 6-week, 9% deep Flat Base 3 weeks ago. However, the stock failed to make meaningful progress.

The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

Hdfc Life Insurance stock fell -3% this week, undercutting its 10-week moving average. It closed -1.3% below the 10-week moving average. However, the volume for the week remained below its 10-week average.

The long term support line, 40-week moving average is still in uptrend. The stock is trading around 9.4% above the 40-week moving average.

In a strong market, the 10-week moving average, can act as a support level for the stock. But, it can also act as a resistance level during a downtrend.

At this point, if you do not have enough profit on the position, from a risk management standpoint, you may want to cut the position. If you have enough profit, you can monitor the stock carefully for signs of further weakness.

The other stocks that closed weak yesterday are: Icici BankGreenpanel IndustriesBharat ElectronicsApollo TyresFederal BankIndian BankSundaram ClaytonDlf LtdTvs Motorand Aegis Logistics.

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