Hexaware share prices are trending higher since 2016. Shares rallied from 184 to 500 within a period of 2 years. But on Last Friday, Shares fell as much as 16.57%, after the company witnessed a series of large block deal orders. The primary reason for the fall is taunted as Promoter stake sale. Bloomberg reported that 23.3 million shares, representing 7.8% stake of the company changed hands. But despite these short-term fluctuations, Long term trend of Hexaware Share prices is still intact. Weekly chart shows the picture in a clear and concise way.
Hexaware Share prices – Long term Trend in Weekly chart
From November 2016 to July 2018, that is less than 2 years’ time, Hexaware Share prices climbed from 185 to 500 per share. In the perspective of Dow Theory, it’s a long term trend. Trend trading strategies worked out very well during this time period. Price action offered multiple trend trading setups within the Market structure. Quantitative range expansion strategies would’ve performed better on this time frame. As I have pointed in one of my earlier reports, it’s a good stock for positional traders.
But from Mid-July, Stock prices tumbled steeply from the high of 525. Because of the fundamental valuation pointing out that Hexaware shares are quite expensive. On Last Friday, Shares plunged almost 17% on the reports of promoter stake sale. As a result of these factors, a sharp retracement took place on the weekly chart. The size of the retracement is a bit larger than previous one and it’s over shading the Long term trend. Hence it’s better to watch the price action on weekly chart in coming days to make an informed trading decision. Also keep an eye on Stock valuations.
