From last three months, Sun Pharma share prices are falling down. Stock value declined from 680 to 520, in the period of September to November. Sell off even intensified further in the last couple of days because of general Market sentiment and disappointed Q2 Results. Here’s the overall journey of Sun Pharma share prices, from June 2018 to till date..
Price Action Analysis on Daily chart of Sun Pharma
After a significant rally from 436 to 680, Short term uptrend lost momentum and Market structure reversed. Price action consolidated above 650 for a while and later declined from that level. The price move is merely reflects weak hand players trapped by Informed Traders. It’s because of forced liquidation of these weak hand players, overall market bias has shifted – We refer to this type of reversal process as “Absorption”.
In the last couple of days, Sun Pharma share prices experienced an even sharper selloff from 600 to 520. Followed by a retest at 600, Selling pressure drastically increased. It’s mainly because of unexpected Q2 Results. The firm reported a surprise loss of 219 Crores for the quarter ended on September 30. Given the pessimistic outlook on the stock, prices drastically fell as a result of negative order flow.
Right now, Prices are trading close to the decision point at 500 – 510. If we witness some good buying interest at the level then market sentiment could change or else selling pressure will drive the prices even further. Traders should watch the Price Action around the zone and take trades according to resulting Market behavior.
