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Hexaware Share prices – Focus on the Price action of Long term trend

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

 Hexaware share prices - Price action is retracing in Long term trend

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.


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About the Author:

Balaji is a Speculator, Investor and Trader (All in All!!!) and self published author. Trading in the Markets since decade, have seen more ups and downs along with institutional trader's lifestyle. He usually trades Nifty, Bank Nifty, Commodities, Futures cum Options around both Indian and global Markets. Balaji applies highly analytical and systematic Price Action strategies He blogs passionately about Trading strategies, Price Action Trading, Technical analysis, Macro events, Market setups, Financial and Economical topics. Apart from Trading and Blogging, Balaji also mentors aspiring Traders and Investors on becoming successful in highly competitive financial Markets.

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