Glenmark’s Strong Run Might Be Over: Are We Heading for a Correction? 🧐

https://preview.redd.it/pniqn7mihs8e1.png?width=2229&format=png&auto=webp&s=c080bbb054eddda6e68a66a514065881e3c27db4 https://preview.redd.it/op2gu8mihs8e1.png?width=2229&format=png&auto=webp&s=84aaa839af92ec35c9be4ddecabbddaaaab0e7b6 Glenmark is currently trading at its all-time high but has not seen a significant correction yet. However, it appears to be losing strength as both the Weekly and Daily RSI have dropped to around or below 50. On the daily chart, the stock has formed a Head and Shoulders reversal pattern, broken the neckline, and has been consolidating within the range of the breakdown candle for the past 42 days. Additionally, it is trading below the 40-day EMA, and the Bollinger Bands, which have gone through cycles of contraction and expansion, are now contracting again. The RMI (Rohit Momentum Indicator) is signaling a sell across all timeframes except the daily, which is close to giving a sell crossover. Analyzing the Futures OI (Open Interest) data, we observe that from March 2023 to February 2024, the stock's price rose steadily with consistent long buildups and occasional long unwinding. However, since February 2024, while the stock price continued to rise, the OI reached its peak and started declining, indicating that the price increase was mainly driven by short covering. Now, OI is at its lowest point, suggesting that a trending move in either direction is likely soon. A bearish crossover in the daily RMI will be the first indication for a potential short entry. If the stock breaks below its 42-day consolidation range, it will significantly increase the likelihood of a bearish move ahead. Additionally, if OI starts increasing during this correction, it could signal the potential for a deeper downward move. Please share your own thoughts?