Looking at the technical picture of the HDFC Bank Limited stock (NYSE: HDB) on our daily chart, we can see that from around the end of September, the share price continues to trade above a medium-term tentative upside support line, drawn from the low of September 29th, 2020. However, from the beginning of February, the stock is moving sideways, roughly between the 77 and 84-dollar marks. The overall trend is to the upside, however, to get a bit more comfortable with the upside, we would like to wait for a break above the upper side of the short-term range first. Hence our somewhat positive approach for now.
If, eventually, the stock jumps above the 84.66 barrier, marked by the highest point of February, that would confirm a forthcoming higher high, potentially setting the stage for further advances. HDB might then rise to the 88.59 obstacle, marked by the low of November 12th, 2018, where the share price could get halted for a bit. The stock may even retrace back down slightly, however, if it remains trading somewhere above the 84.66 hurdle, this might keep new buyers interested for a while. HDB could move up again, possibly testing the 88.59 obstacle, a break of which might clear the path towards the 93.87 level, marked by the lowest point of December 2018.
Both, the RSI and the MACD, are currently flat. The RSI continues to run fractionally above 50 and the MACD, although still in positive territory, remains slightly below its trigger line. The two indicators seem to be inline with the current calmness of the stock, but the fact that RSI is still above 50, that gives some hope for the buyers.
Alternatively, if the aforementioned upside line breaks and the stock falls below the 75.91 hurdle, marked by the highest point of January, that may spook new buyers from entering for a while. The stock might then drift to the lowest point of January, at 68.60, a break of which could set the stage for a move to the 63.84 level, marked by the lowest point of December 2020.
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