An interesting technical pattern is playing out in Maruti. Worth paying attention to since the entire Auto sector has been badly beaten down recently.

Weekly Chart of Maruti below shows it bounced from the 5940 levels after breaking down from a consolidation pattern. With this we will now drill down to the daily charts in the next image.

Maruti Weekly

Below is the daily chart of Maruti and we can see the large volume and long range day which led the scrip down. Such sell-offs are generally the sign of a selling climax. The understanding is that most sellers have exited and hence in the near term the downside is limited and the scrip could move back to the mean. This also co-incides with the support on the weekly levels. Previous three days formed what is known as a narrow range pattern. Basically the two candles inside the body of a larger candle mean consolidation. And today if we notice the range is being broken on the upside. Will it sustain remains to be seen.

Maruti Daily

The 15 minutes chart below also shows an inverted H&S pattern. I generally do not refer to the 15 minutes chart but in this case with the larger time frames pointing a direction and the smaller one following it warranted atleast a mention.

MARUTI 15 mins Chart