Sell in MindTree from a short-term perspective. It is visible from the charts that after bottoming in early March at Rs 187 it was on a structural uptrend till it encountered resistance at Rs 622 in mid-July. The stock had formed a rising wedge (in this case it is a reversal pattern) spanning between early June and mid-July, and reversed direction breaking out of the pattern. A negative divergence displayed in the daily moving average convergence and divergence indicator backs this pattern. Besides, we notice a negative divergence in the weekly relative strength index (RSI).While trending down, the stock penetrated its 21 and 50-day moving average one after another. We are bearish about the stock from a short-term perspective. We anticipate the stock’s decline to prolong until it knocks our price target of Rs 395 in the upcoming trading sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 456.
source: BL
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