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ICICI Bank Price action – Focus on the Minor Consolidation

ICICI Bank Share prices are undergoing major structural changes. From Feb to April, Market was in downtrend. In Mid-April, prices broke the key support zone at 275, but later bounced back with strong momentum. This movement acted as a precursor of changing market sentiment. I have already pointed out these developments in earlier article. Here’s the recent update of Price action analysis in ICICI Bank 4h Chart.

ICICI Bank Short Term Price action Analysis on 4h Chart

Consolidation after an Upswing, Traders should focus on the Price Action

After breaking 275 (which was a potential support zone of higher time frame) Shares prices regained bullish momentum and experienced a strong rally from the low of 260. This sudden spike caught many traders off-handed and forced them to liquidate previous positions. The movement is nothing but a result of short sellers squaring off their open positions and Major Value investors accumulating the stock at better price.

Then later, Price action unfolded into a minor consolidation after the rally. In a narrow range Share prices are struck within 275 – 296. It technically denotes that trading volume is decreasing along with Market Participation rate as both buying and selling pressure has reached a temporary equilibrium. The structure looks like a directional Range in lower time frame such as 1hr and 30 Min. Traders should observe the Price action within this Minor consolidation phase. We can expect a Major market movement on either side, depending on the Breakout from this consolidation phase.


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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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