This year is not so good for PC jeweller Share prices. In Jan, it was trading close to 600 per share, and then prices drastically fell till 200. Now prices have breached 200 and trading near 150 per share. So far, we could only see sellers’ dominance and bulls are completely absent. In last couple of days, downfall intensified even further. Look at those recent bearish candles in daily chart; it reveals the nature of Bearish Momentum.
PC Jeweller Intermediate term Price Action Analysis
From Feb till April, prices traded in a tight range. Market price action formed structural support zone at 300 – 320. This is just a reflection of Bottom fishing done by weak hand traders. After a drastic fall, some weak hand players (most probably retail traders) tried to support the stock prices but failed miserably. These trapped traders were later forced to liquidate their positions.
In last few days, selling pressure increased even further. The structure and size of recent bearish candles simply indicates large quantity of sell orders rushing into the market. It seems like some big players are liquidating their earlier positions. These candles are nothing but just a result of sharp liquidation.
It’s very tempting for traders to sell at lower prices! But remember the adage “Buy low – sell high” The present market scenario might be a precursor for Sentiment extreme and Oversold market. Price action might retrace or bounce back, so traders must watch the developing market structure and execute trades with proper risk management.
