As I suggested in earlier article, the shake out manifested in the (ITC) stock and price bounced back till 234.00. The recent move is due to liquidation of weak hand players. Stock prices are always driven by events, factors and positioning aspects. The next move in stocks will be most likely influenced by upcoming RBI decision. ITC can offer some trading opportunities ahead; Traders can watch price action for trading setups to get some skin in the game. ITC is trading around 230.00 per share value in equity segment. Look at my Analysis on the Chart for better understanding of the context. I cover such a type of chart analysis, Trading strategies in my Price action trading course.
We see a corrective in a bearish context, based on a gut instinct observation it seems like a temporary pause before market tumbles further. On the other hand, it is also necessary to note it’s a reversal pattern on shorter time frame. Short term support level is at 225.00. To prove their dominance bears must defend the resistance levels, the next one is at 240.00. Putting RBI decision into the context, any strong bullish moves will serve a precaution to change the trading plan. Focus on Price action at resistance, see how bears are reaction then take the decision.