Zee Entertainment Ltd is one of the most active stocks in the market. But from the last few months, we haven’t seen much of a directional movement in the stock.
Since from the end of September 2021, Stock Prices were struck in a narrow range between 330 – 280. Price Action has formed Support Zone around 280 and Resistance Zone around 330.
Recently prices have broken the Resistance Zone at 330, retested the level and moved higher till 360 with moderate Upside Momentum. Right now prices are testing the alternate Resistance zone at 360. Take a Look at the Price Action Analysis of Zee Entertainment Limited on 4H Chart
ZEEL Stock Prices on 4H Chart
Even though the Stock Prices are moderately bullish, the overall market condition of Nifty 50 is bearish, hence that can influence the Stock Prices.
Another important reason is to consider the volume. So far we haven’t noticed any strong increase in the Volume, in fact we are experiencing lower than average volume which technically means overall trading activity is very low. In order for stock prices to make significant movements either to the upside or downside, we want to see a strong increase in the Trading Volume.
Based on Price Action and recent observations, Prices are likely to move lower. Any Breakout at the resistance zone without significant momentum or Volume can turn into a False Breakout or Bear Trap.
On the other hand, any positive news or Change in the Direction of Nifty 50 can change the Overall price action and as a result prices could break the resistance zone and move higher. In my perspective, it’s better to wait for some clarity before trading the stock.
Keep an eye on the Price Action, watch out for the Market Behaviour at Resistance zone around 360 and take decisions accordingly.
