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Lupin – Price action structure changes, Downtrend termination ?

Just like other Pharma sector companies, Overall structure is a downtrend or what we can refer from Price action perspective as classical Mark down phase. (Lupin Share prices tumbled from 1500 to 918.) The second largest drug making company in India reported net profit of 662.9 crores in recent Q2 report – recorded strongest growth everywhere, expect in US generic business where the firm continues to experience pricing pressures. However, Overall Profits were better than market expectations.

Lupin Share Prices – A change in Market structure

Lupin Share prices - Price action indicates a change in market structure.

Downtrend experiencing a loss in bearish momentum after it crossed psychological round number 1000. Previously, Market offered multiple trend trading opportunities throughout the trend as pullbacks and minor corrections were followed by sharp downswings indicating range expansion context.

But Market structure experienced a drastic change in both price action and volume from September onwards. Unlike previous price action, we couldn’t witness any sharp downswings. Selling pressure failed to follow through minor corrections and pullbacks. Also volumes declined, recording lower market participation rate in the period. These factors indicate that liquidity has dried up and some smart money players are exiting from oversold conditions to avoid risk.

Changes in Price action structure coincided with the release of 2017 Q2 earnings report. Does all these means buying interest can increase in Lupin on coming days? What’s next? Will the downtrend terminate or would it continue further? Watch the Price action for clues and trade accordingly. It’s a good stock for long-term investment, but for short-term we need to listen what Price action says! Anyways, Lupin is an interesting stock; it must be in your watch list.

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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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