In my experience, some of the best trading opportunities often occur when Stock prices move from Range to Trend. Such type of “Range transition” opportunities might take place in India bulls Housing Finance. In the Recent Price Action, Momentum has picked up in stock prices, if the momentum continues further it could lead to Sharp movement in the stock. Take a look at this 4h chart of INBF to get an Idea of what I mean.
India bulls Housing Finance – Price Action Analysis on 4h Chart
Overall Structure wise, INBF Stock prices were trading in a broad range of 275 – 375.
Since from the Mid February, prices are rallying higher within the Range. The Bullish candles in the rally were relatively larger and stronger compared to the earlier ones indicating that Bullish momentum is picking up in the Stock.
Right now stock prices are retesting the Resistance zone at 375.00. If the bullish momentum increases even further, there’s a good possibility of a Breakout. Such a Breakout could change the overall market structure and Price Action could move sharply in one direction. On the other hand, if the momentum fails it could end up becoming a False Breakout. In either case, we can expect a good opportunity in upcoming days.
Traders should keep an eye on the Price Behavior at 375.00 and should take trades only after the formation of a proper trading setup.
