HDFC Bank Limited, together with its subsidiaries, provides a range
of banking and financial services to individuals and businesses in
India, as well as in Bahrain and Hong Kong. The company operates in four
segments: Retail Banking, Wholesale Banking, Treasury, and Other
Banking Operations. It offers various deposit products, including
savings accounts, salary accounts, current accounts, fixed and recurring
deposits, demat accounts, safe deposit lockers, and rural accounts, as
well as foreign currency deposits; loan products comprising personal,
business, home, car, two wheeler, educational, term, gold, and rural
loans, as well as working capital finance, and loans against assets and
government sponsored programs; credit, debit, and prepaid cards; and
private banking services.
Take a look at the 1-year chart of HDFC (NYSE: HDB) below with added notations:
HDB has essentially been trading sideways for the last 2 months,
while forming a common pattern known as a rectangle. A minimum of (2)
successful tests of the support and (2) successful tests of the
resistance will give you the pattern. HDB’s rectangle pattern has formed
a $50 resistance (red) and a $46 support (green). A break above $50,
which HDB has already failed to do once earlier this month, would also
be a new 52-week high.
The Tale of the Tape: HDB is trading within a
rectangle pattern. The possible long positions on the stock would be
either on a pullback to $46, or on a breakout above $50. The ideal short
opportunity would be on a break below $46.
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