From Mid-April, PC Jeweller Share prices are in a free fall. Share prices declined from 150 to all the way down and now trading around 75 – 76 per share. Based on Price Action and Volume analysis, we can say that this entire selloff is because of market participants squaring off their previously held long positions. In simple words, the selloff we witness is caused by profit booking. Take a look at the 5h chart of PC Jeweller Share prices.
Price Action Analysis of PC Jeweller in 5h Chart
The Important highlight on the chart is decreasing volume. The volume reached peak level around Mid –April and share prices started to decline from that point. The so-called Peak Volume also coincided with Climax Movement (Share prices shooting up from 96 to 150, relatively a 30% gain in matter of 1- 2 days) which is an Indication of overbought market.
After hitting the peak levels, Volume consistently declined. This decreasing volume is a sign of decreasing trading activity and Market conviction. In a straight forward sense, Volume is telling us that market participants are exiting from their positions. So the entire price action that we see on the chart is a result of Liquidation. That’s the reason PC jeweller share prices are in a free fall.
If you’re planning to take trades in PC Jeweller, it’s good to wait for a proper trading setup. In my perspective, this is not a right time to take any trades – It’s better to wait for a Pullback and take decisions based on the developing price action. Being said that, keep PC Jeweller in your watch list, it might give some good opportunity in upcoming days.
