Marico Stock prices were trading in a consolidation since the beginning of this year. The Price behavior is struck in a narrow range between 430 and 390. But now we can notice a strong upside breakout with good Momentum on Daily Chart. The Breakout happened right after the announcement of Quarterly earnings during the last week. Stock prices have climbed up to 18%, so far in less than a week!
Marico Ltd – Price Action Analysis of 1D Chart
Prior to the Breakout, Short sellers and Bearish Traders who tried to take positions on the downside, close to the support line at 390, got trapped by the market behavior. Another attempt by sellers ended up as a failure at 415 – 400. All these observations tell us that Price Action is consistently creating Ear traps. People who have a bearish outlook on the markets, needs to be a bit careful.
Apart from that, The Breakout also coincided with a Volume spike – Volumes reached new highs on the daily chart during the breakout, which simply indicates that Breakout is very strong.
Traders should keep an eye on the stock, avoid taking any impulsive decisions. It’s better to take positions after a retest, and not trading at highs. Also focus on keeping a strict Risk management in place.
