ITC Stock Prices are Struck in Range for a very long time. The Market movements are limited between the narrow levels of 200 – 230. Looks like long-term investors who bought the stock, expecting Strong movements, are now confined between those narrow ranges. Can we expect some sharp moves in ITC? Well, take a look at the Price chart.
Price Action Analysis of ITC Ltd. 1D Chart.
We can clearly notice a narrow range of ITC Stock Prices in 1D Chart. The Prices have tested the support zone at 200, multiple times. If we count, it has almost tested 6 times so far. If you’re a Professional trader you can understand that some uninformed buyers are struck at the Support zone. They’re Vulnerable to a false move. If Prices create a false breakout, most of these Uninformed traders who’re struck in the Stock will be forced to liquidate their positions.
Another important point is to notice the declining Bullish momentum. After each consecutive test at the support, the upswings are decreasing in size. It seems like buyers are losing their strength and ability to defend the Support zone.
The only factor that’s supporting the Buyers is the Increasing Volume. The Trading volume is increasing in the last couple of days which can be considered as a positive factor.
There’s a high possibility of Prices testing the Support zone once again or even Breaking the support zone. A crack below 195 can push the prices all the way to the Downside. On the other hand, if buyers are able to take control of Stock prices they should break above 220 first, if that happens then prices could shoot up. Either way, for a significant move, Price action must break from the narrow range, or else ITC stock prices will be struck within those confinements. Keep an eye on the Price Action and Trade accordingly.