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Yes Bank – Downside Breakout, beware of Bull traps

We can Observe a sharp downside breakout in Yes Bank (NSE: YESB) daily chart, market prices retesting near the broken support zone 340 – 350. Top private sector bank stocks took hit after government unveiled PSU recapitalization plans; YES Bank is one of those shares that tumbled right after the announcement. Though it’s not the only reason for YES Bank’s sluggish performance, the sharp downside breakout also coincided with RBI probe and fine on Yes bank for misreporting NPA’s.

PRICE ACTION ANALYSIS ON YES BANK STOCK CHART

Price action retesting after Breakout  in Yes Bank

Yes bank share prices were struck in range between 380-340 for last 3 months; eventually prices broke out downside at the end of October from long-standing support zone 340 – 350. Technically it’s an intermediate range (if we see it from the perspective of Dow Theory), so institutions like FII’s might have reduced their holdings in the range, similar to Wyckoff’s distribution phase.

Currently we witness Price action retesting near broken support zone, looks like market prices are testing the willingness of sellers. We must see good selling pressure after retest and minor rallies to confirm bearish sentiment. If we can’t witness any selling pressure it may turn out as a retest failure or bull trap. Traders must watch the Price action and take trades accordingly with proper risk management. Positional traders and swing traders can expect good opportunity on Yes Bank in coming days.

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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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