Cummins India Continuing Down Trend

Cummins India has been in a long term downtrend. It has made its all-time high in 2015 of 1247 since then it has never touched that level. For almost 5 years it has been moving downward and forming lower low and lower high.

Recently it has moved from 280 to 475. In this up move, it has formed a rising wedge pattern. This rising wedge pattern is an indication of the continuation of the downtrend. Indicators are also suggesting the weakness in the momentum in the price.

RSI forming negative divergence.

MACD also has a negative divergence with the bearish crossover of MACD and Signal Line.

On the weekly chart, 50 EMA is creating resistance at 475.All these signals indicating that the stock will continue its downtrend. It may fall up to 425 and further to 380.Be cautious in making any long position.

We are bearish on this stock. Do your own research also before taking any position.