For all those Counter trend traders out there, here’s a stock that you may want to consider – Ambuja Cements.
Stock prices have turned around and rallied nearly 27% within a few weeks. From 280, the prices went to 370, which is an impulsive movement for the Stock.
The most interesting aspect of the Stock is that the intermediate trend is towards the downside. If the Buying pressure that we are seeing right now succeeds, then price action could lead to further upside. That could result in an excellent Trend Reversal trade.
Take a look at the Price Action Analysis on the Chart
Ambuja Cements – Price Action Trading Outlook on 5h Chart
After a Strong Buying Pressure, we can see a Pullback in Share prices. Does this pullback lead to further continuation of the Upside momentum?
Even the Volume has been consistently increasing in the last couple of weeks, which is a good indication of improving order flow. Perhaps it also indicates an Accumulation Phase.
So, based on these observations, can we say this is a turnaround in Ambuja Cements? Well, I guess we need to watch the Price Action and if the Upside momentum continues, then this could turn into an excellent Trend Reversal trade.
Keep an eye on the Stock. Put it on your watch list.
