IDBI Bank Share prices are in Intermediate Downtrend. The trend is persisting for almost 5 months, hence based on the duration we can refer it as “Intermediate trend”. Like other Public sector banks, IDBI stock prices are very volatile, making it subtle to spot trading opportunities in lower timeframe. But in Daily chart the trend is clearly visible. Unfortunately from last two weeks the structure of this Downtrend is changing, so Trend traders must rethink about initiating trades.
IDBI Bank Price Action Analysis on Daily Chart
Probably the Trend might have started with some radical changes in News and Market sentiment. Share prices started to fall in beginning of March from the high of 89 per share. In the current context, share prices are trading close to 50 Rs. That’s almost 46% decline from its peak value within the period of 5 months. As the famous saying goes “Markets take the stairs up and Elevator down”, that’s the case with IDBI. This downtrend offered excellent trading setups for Trend traders who traded in F & O segment. Even a simple 2M put option would’ve yielded astounding returns.
In present scenario both Price action and Market behaviour is changing. Downtrend is witnessing some minor shifts in Market structure. Especially when we notice the size of retracement from 48 to 58 (in Yellow Box) and compare that with earlier retracements within the trend, we could comprehend that buying pressure is increasing. Is this a precursor for trend termination? If the trend terminates, would it revert into a range? Or would it completely change into an opposite trend? In either case, we can expect some High probability Price action setups. Just keep the stock on your watch list and wait for opportunities.
