As Most of the Market Participants are focused on the Selloff in Stocks, Nifty and Bank Nifty Indices, this particular and less popular company – TD Power Systems, rallied by more than 30% in just a few days, barely in a week! Take a look at the Price Action on the 1D Chart.
Price Action Analysis of TD Power Systems in 1D Chart
What’s behind the Move?
First of all there seems to be a lot of Buying Pressure in the last few days until recently the Stock prices began to fall after testing the Highs at 300. There was a huge build up in the Volume and very good indication of Smart Money Involvement or Insider trading in the Stocks. Another important thing is consider that Stocks like TD power systems have less liquidity which can cause stock prices to shoot up even with less potential buying pressure.
Retest Trading Setup
If you observe the Stock from a Price Action Trading perspective, it’s a Flip Retest Trading Setup. I have already discussed about the Trading Strategy through My content and Video before, Take a look at the Video Link below.
In this specific case, Stock Prices have clearly broken the Resistance at 225 – 230 and then retested the area to indicate the strong conviction of Buyers. The Flip has happened here, the area at 225 – 230 changed from Resistance to Support.
What’s next for the Stock Price?
After Testing the Highs of 300, the stock prices are retracing back. The Large upside wick in the recent candle indicates Selling Pressure on the Stock. As per the current price action, it can go into temporary sideways range or correct for a while. Traders should keep an eye on the Price Action and must take decisions accordingly.
