Coal India is one of those stocks in which Price Action is sluggish most of the time. But from the last couple of weeks, we can see a strong momentum picking up in the share prices.
Prices have rallied from 140 to 170 so far, which is almost a +21% Return on the Stock. When we look at the overall Price Action, it’s easy to spot a Trend Reversal taking place on the chart.
Take a look at the Price Action Analysis on the 4h Timeframe
Coal India Price Action Analysis on 4h Chart
After an Overextended Downtrend, Price Action is showing Signs of Trend Reversal. The Upside Momentum has been very strong on the stock prices for the last couple of weeks.
Price Action is constantly holding at the Parallel Support Zone. Every time prices touch the Parallel Support Zone, prices bounce back; this is a good indication of Buying Pressure on the stock.
Volume is also showing signs of Suppression; it’s possible that Big Players are accumulating stock without moving the prices too much.
Based on all these observations, we can understand that Coal India is in a Possible Accumulation stage and Trend Reversal Structure.
The potential Resistance Zone is at 175 and the Parallel Support Zone is around 160. Traders should keep an eye on the Price Action and take positions when there’s a clear trend emerging in the price.
