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SBI Cuts Lending Rate Does it means a Breakout in Stock prices?

Price action on the verge of Support level

SBI Share prices are consolidating since September 2016. I have updated that several times in my earlier articles. As anticipated by market participants, India’s biggest lender by assets cut down its Interest rates by 90 basis points. Will this lead to a Breakout in stock prices?

The recent rate cuts are applicable for maturities ranging from overnight to three-year tenures. The move is a positive result of demonetization, especially for consumers. Stock prices fell on Monday open, after the announcement.

Flipping the Daily chart, we can spot that SBI Price action in the verge of support level 240.00. By combining recent selloff and lacking momentum of buyers, we can conclude that stock is still in Bearish bias. Right now there are two possibilities, either Prices will breakout (if there is enough selling pressure) or may result in breakout failure (if demand comes back.) This stock will be in my watch list for swing trading, due to the confluence of both fundamentals and Price action.

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About the Author:

Balaji is a Speculator, Investor and Trader (All in All!!!) and self published author. Trading in the Markets since decade, have seen more ups and downs along with institutional trader's lifestyle. He usually trades Nifty, Bank Nifty, Commodities, Futures cum Options around both Indian and global Markets. Balaji applies highly analytical and systematic Price Action strategies He blogs passionately about Trading strategies, Price Action Trading, Technical analysis, Macro events, Market setups, Financial and Economical topics. Apart from Trading and Blogging, Balaji also mentors aspiring Traders and Investors on becoming successful in highly competitive financial Markets.

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