The markets continued their fall for the 3rd straight session on Wednesday, with the benchmark index trading 0.85% down at 19,734, by 2:37 PM IST. None of the sectors are trading in the green zone as investors’ risk appetite seems to have taken a hit after the US Fed’s commentary last night.

One stock that is looking quite weak on the charts is Cipla Limited (NS:), a well-known pharmaceutical company with a market capitalization of INR 1,00,151 crore. The reason it is looking poised for a good fall is a breakdown below the rising trendline support of a symmetrical triangle pattern on the daily chart.

Image Description: Daily chart of Cipla

Image Source: Investing.com

This is quite a bearish signal, especially after a one-sided rally in the recent past. This steep price gain makes it one of the best candidates for mean reversion trades and such a bearish signal from these overbought levels should not be ignored.

Today, the stock fell 2% to INR 1,215, and as per the dimensions of the triangle pattern, the next level that could be there on the screen is INR 1,145. However, as the stock is trading at quite a high level, it can further slide to lower levels.

As long as the upper trendline resistance of the triangle pattern is not taken out, the trend should be deemed to be bearish.

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