It’s time to be Careful about Adani Power! Take a look at this Chart and Video
Adani Power is a darling stock for many investors and traders. When the entire markets are down, the stock prices of Adani Power kept marching higher. When we look at the Weekly chart, since the beginning of this year, Adani Power Share price has skyrocketed by more than 150%.
But the strong uptrend might get tested aggressively in upcoming months, as stock prices are not only trading at all-time highs, but even the market behavior is flashing signs of overbought conditions.
Take a look at the chart…
Adani Power Price Action Analysis on 1W Chart
As of now, stock prices are trading close to 350, which is an all-time high. Thinking from the perspective of Risk – Reward, it doesn’t make much sense to take long trade even if it goes higher.
We can see the signs of Upside Climax, which indicates exhaustion of buyers. The climax often leads the stock prices into the Distribution Phase, a stage where Big Players are likely to liquidate their positions. Checkout the video link given in the end, to learn more about the Distribution phase.
Another factor of concern is the Peak Volume, which reflects the signs of overbought market conditions.
Based on these factors, Adani Power Stocks might undergo a small retracement. If the selling pressure is strong, it might even experience a Trend Reversal. Traders and Investors who already have open positions in Adani Power must be a little cautious, as we may experience more volatility in the Stock.
Keep an eye on the Price Action and take decisions accordingly.
