IT stocks are the strongest stocks in the recent past. But from last week downtrend it looks like they are no more. Last week HCL technologies(HCLTECH) made lifetime high of 805.50. But it couldn’t hold the high levels. Friday the stock has closed at 767.95 which is 4.66% down.
In the last three days Heikin Ashi Chart started creating red color candle bar with no upper shadow. Which means Heikin Ashi started giving warning sign that stock has lost its momentum. Its not only Heikin Ashi, there are lot of other momentum indicators such as RSI, MACD are started showing negative momentum.
One can go short with HCLTECH with target of 730 to 720 levels by keeping stop loss of 810 level.