Defensive stocks and certain Pharma sector shares are finding their tune in the recent market conditions. Investors are shifting back and forth between risk on and risk off sentiment.
Here’s a large cap Pharma stock that has rallied by more than 23% within 2 months. Well, we are talking about Sun Pharmaceutical Industries ltd, aka Sun Pharma, ticker symbol NSE: SUN
Sun Pharma Stock prices have rallied all the way from 860 to 1000 so far, at the time of writing this article. Take a look at the Price Action Analysis on the chart.
Sun Pharma – Price Action Trading Analysis in 5h Time frame
We can notice a strong structural uptrend in stock prices that started in mid-September. Prices have been consistently moving higher since that point.
There are signs of institutional traders in the stocks, especially those large bullish candles at the edge of the Pullback indicating the presence of big players.
After crossing 1000, we can see a strong impulsive movement in the Price Action, which signals the exhaustion of buyers.
In my opinion, there are chances that prices could retrace or correct a little bit before moving upside further.
Moreover, Trend is visible to most of the market participants, hence there are chances of minor corrections.
Most of the traders who have taken positions at the peak level in Sun Pharma are likely to be intuitive traders! To learn more about intuitive trading, check out my video given below.
Keep this stock on your watch list, as we might get good swing trading or positional trading opportunities in upcoming days.
