Chart Check: Market near record highs, but this travel stocks is down nearly 20% from highs; likely to stay weak

economictimes.indiatimes.com:

IRCTC, part of the travel and tour industry, is looking weak on charts and chart structure suggests that the stock is likely to remain under pressure. Short to medium-term traders can look to sell the stock for a target below Rs 500 in the next 6 months, suggest experts. The stock closed at Rs 623 on 21st July 2023.

The stock hit a 52-week high of Rs 775 on 7th November 2022 but it failed to hold on to the momentum. The stock found support at Rs 557 on 29th March 2023 and then bounced back. It closed at Rs 623 as on 21st July which translates into a downside of about 20%.

The stock did bounce back and hit an intraday high of Rs 675 on 19 June 2023 but witnessed selling pressure thereafter. The Supertrend indicator triggered a sell on 22nd June on the daily charts. The stock now trades below most of the short- and long-term averages.

It is below the 5,20,30,50, and 200-DMA on the daily charts. On the monthly charts, the stock is displaying a bearish signal and on the weekly charts as well the stock is not able to breach the resistance area of a falling trendline since the beginning of 2022. “The monthly chart displays a number of bearish indicators, such as a long upper wick in October 2021 and a bearish engulfing in February 2022.

The Evening Star that formed in December 2022, following an upward retracement, is another unfavorable sign,” Suraj Bathija, Founder & CSO at AlgoBulls, said. “These unfavorable signs show that there are more sellers than buyers, according to the volume of transactions,” he said. “On the weekly chart, a descending trend line was drawn, and a second bearish engulfing sign was built at the trendline, indicating that the weekly's time frame would likely face additional resistance,” highlights