Some of the best moves take place in stocks ignored by the public; ICICI Bank can be a best example for that. After several management issues, NPA Problems and other fundamental factors ICICI Bank Share prices are slowly emerging back from the pessimistic grip. Recently released Q2 results have beaten the estimates, forecasts and have taken bears by surprise. Price action might be undergoing a major sentiment shift.
ICICI Bank Share Prices – Price Action after Q2 results in 4h chart
After rallying from 260 to 340, Price action failed to break the swing high at 345 in the month of August. Followed by that, Share prices tumbled from the peak. The resulted selling pressure caused prices to fall from 340 to 310. Price action made consecutive lower lows, but somehow the bearish trend reversal attempt ended up in failure and instead share prices moved into a narrow consolidation.
Right after Q2 results, share prices surged 8%. Price action aggressively broke out from the consolidation zone. Looks like previously established short positions were covered and liquidated quickly after the release of Q2 results, a classic short covering process. If the current stance continues further, Market sentiment can change towards a more positive outlook. Traders should keep an eye on developing Price action, fundamental factors and take trades according to resulting market behavior.
