Cummins India trades below broken trend line

Cummins India Limited shares rose 1.88% to Rs 4,830 but remain below a broken trend line. Resistance is at Rs 5,000 and support is at Rs 4,394. Cummins India Limited [

] shares rose 1.88% to Rs 4,830 on the daily chart. The stock is trading below an upward sloping trend line that it has broken on the downside. The session opened at Rs 4,740.90, touched a high of Rs 4,859.00 and a low of Rs 4,671.10. The stock is more than 20% below its peak, and the fall was about 23% at the day’s low. In my view, the trend has turned bearish. A fall of over 20% from a peak is often read as a shift to a bearish trend. The stock also trades below its 200-day SMA, and the price has stayed below the broken trend line. The RSI reads 41.96, above its average of 39.22, which shows selling pressure easing. Today’s gain is small and does not show a bottom. A move above the Rs 5,000 resistance, near the trend line, would weaken this view and bring a recovery attempt into focus. A fall below the Rs 4,394 support would put lower levels in view. Bearish view while price trades below Rs 5,000 and the broken trend line. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.