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IDBI Bank – Downtrend Price action Structure is changing

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

Price action shows changing Market structure in Downtrend

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.


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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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