The YES Bank Ltd stock, which had 49,10,878 small investors at latest count, has fallen over 16% from its recent high, prompting traders to wonder if the recent breakout run has ended. Still up 17.44% year to date, the stock is down 23% from its 52-week high of Rs 32.81 on February 9. YES Bank is trading above its key moving averages, and the momentum indicator Relative Strength Index has recovered to about 58.
Mandar Bhojane, Equity Research Analyst at Choice Broking, stated that the stock created a Rounding Bottom pattern breakout with considerable volumes, indicating a strong bullish reversal from the bottom. He stated that the YES Bank stock price had successfully exceeded the previous swing high of Rs 32 on June 1, 2020, reaching a high of Rs 32.85.
"Since the breakout at 22.35, the price has increased by 46 percent. On the weekly chart, it retraced to retest the breakout level before rebounding, indicating the stock's positive sentiment. The stock has a strong support zone between Rs 22 and Rs 20 levels, which is well correlated with important moving averages such as the 20, 50, and 100 Day EMA. This convergence not only improves the stock's stability but also strengthens its potential for upward growth," he stated.
On Thursday, the scrip was up 4% intraday to Rs 26.48 on the BSE.
Rupak De, Senior Technical Analyst at LKP Securities, stated that the YES bank stock has gained quickly following a breakout during consolidation on the monthly chart, indicating a sudden surge in market excitement. However, it failed to maintain selling pressure at the historical consolidation high of Rs 32, resulting in the subsequent fall.
A strong move above Rs 33, he suggested, may take the stock above Rs 50. Support is seen at Rs 22.
