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Venky’s Stock prices – Focus on the Trend in Weekly Chart

Venky’s Stock prices are trending higher since 2015. Within a matter of 3 years, Share prices climbed from 210 to 4175, that’s more than 500% returns! Despite multiple corrections and retest, share prices managed to make higher highs because of renewed buying interest and momentum of in the stock. Richard Wyckoff would refer these types of trend as Mark-up.

Venky’s Price action Analysis in Weekly chart

Venkys Stock Price action indicates an overextended Uptrend in weekly chart

The Structure of the Trend is clearly visible in Weekly chart. From 2017, upside rallies became even sharper, reflecting a euphoric behaviour of Market participants. From the perspective of Price action these types of movements are known as climatic pattern. Checkout the Price action from the beginning of 2017 – Share prices strongly rose from 375 – 2500. The trend we see in weekly chart is in place from last 3 years; hence it’s a Long term trend. Even a minor correction within the trend structure on weekly chart will be visible as a major movement in lower time frames.

Another distinctive factor is that sharp volume spike in July 2017. Such a heavy volume spikes technically show more public investors and weak hand players buying the stock. Increasing share prices are attracting more public participation. Large public participation is a bad sign for the trend. Even a small correction can set panic in stock prices.

What’s next for Venky’s? Given these technical factors, will the trend terminate? Or will the Share prices defy the odds to make new highs? Psychological round number 5000 can act like a potential resistance zone; Keep an eye on developing Price action at the level. Swing and positional traders can expect some potential trading setups. Focus on the trend and market movement in coming weeks.


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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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