Just a couple of weeks back in my recent article I pointed out that Yes Bank Share prices are at Inflection point. For the sake of reference, this is the chart I have posted in the previous content.
Historical Price Action Analysis of Yes Bank in 1M Time frame
In the last few days, I received numerous inquiries about the status of Yes Bank. The responses were overwhelming in the last 2 – 3 days, after share prices crashed from 55.00 to 32.00 and quickly recovered back to 40.00. So this is a follow-up article and update in regards to the previous one. Incase if you haven’t gone through the previous article, I recommend you to go through it before reading this one.
As I mentioned in the previous article, Right now Yes Bank Share prices are driven by the news events which are related to Management, Corporate restructuring and Promoters. Even the recent fall in Share prices are attributed to the sales of Pledged shares of former CEO Rana Kapoor by some prominent Asset Management companies. Once the Company’s board clarified the reason behind the selloff, Yes Bank Share prices quickly recovered 20% – 30% within a couple of hours.
Here’s the Recent Price Action of Yes Bank, before and after the board’s clarification.
In the Recent Price Action it’s very obvious to notice the Volatility and uncertainty building up. Not only that, also it’s very clear to see the ebbs and flows of Share prices driven by the news events. Right now it’s very hard to take a clear-cut trading decision on Yes Bank. But there’s one thing we can say for sure – there will be more surprises and volatility in upcoming days and market participants must be prepared for it.
As of now it’s better to take a neutral stance and observe the share prices.
