Yes Bank Share Price Loses Upside Momentum. Watch Out For this Key Level

Summary:
• Yes Bank share price broke below Rs 24.35 for the first time in four days on the 4-hour chart, but the bulls have one more level to avoid.

Yes Bank share price traded below the weekly support level of Rs.40 for an extended period on Monday, signaling an end to its short-lived ascent. The asset traded at Rs 24.20 at the time of writing, down nearly 0.8 percent on the daily chart. Prior to the decline, Yes Bank (NSE: YESBANK) had recorded the first back-to-back gains for the first time since January on the weekly chart, raising hope of a potential bullish buildup.

However, the stock seems to have run out of steam, and the modest 1.8 percent gain realised over the last two weeks now faces the prospect of a reversal. It now needs to stay above the psychological round figure support at Rs 24.00 to avoid inviting a downtrend.

The Yes Bank share price has mostly recorded modest gains and drops on the daily chart in August. This signals low volatility and a stable risk-reward ratio, which will likely result in a positive sentiment to cushion the stock against extended declines in the near-term.

Momentum indicators

Yes Bank has recently broken below the middle Bollinger Band on the 4-hour chart for the first time since August 16. This signals that the sellers could potentially control the share price trajectory in the near-term.

Therefore, YESBANK needs to return above the level corresponding to the middle Bollinger Band at Rs 24.35 to build momentum to the upside. Meanwhile, the Moving Average Convergence Divergence (MACD) line is above the signal line, but a downward crossover is imminent, adding credence to the downside view.

Support and resistance levels

On the chart below, the share price will likely continue heading downwards if resistance persists at the 24.35 mark. With the sellers in control, we could see the first support established at 24.16. However, if they extend their control, the resulting momentum could enable them to breach that mark and test 24.00.

Conversely, moving above 24.35 will favour the buyers to take control. If that happens, the upward momentum could encounter the first resistance at 24.50. Furthermore, if they extend their control, they could break above that level, invalidate the downside narrative and head further up to test 24.68.