As I pointed out in my previous analysis of the Nifty 50, this week started exactly with a strong volatility and selloff. Many stocks are turning the tide and investors are forced to liquidate their positions.
One of the stocks that might end up scaring many investors and traders out of their sleeves could be Indiabulls Housing Finance.
Trends are changing in the Stock. There’s a good chance many market players are struck with their positions in this one.
At the time of writing this article, India Bulls housing finance stock prices were trading around 118. There’s a good chance stock prices might dip even lower. Take a look at the Price Action on Lower time frame, 1h Chart.
Indiabulls – Price Action on 1h Chart
We can see a sharp downtrend in the stocks. Prices have been falling since the 1st week of September; the peak value of the stock is around 144.
Buyers who bought the stock, expecting the prices to go up got trapped by the market carnage!
To understand the Price action with much more clarity and to get a big picture view, let’s take a look at the higher time frame market behavior.
Indiabulls – Price Action Trading Analysis on 4h Timeframe
Once you see the price action in the 4h timeframe, you can clearly understand that buyers, who raided the trend, got trapped by the recent selloff.
Prices have formed a ceiling around 140 and turned it into a strong resistance zone. Trapped traders were forced to liquidate their positions.
At present, a temporary support is seen around 116 and prices are testing the level. Will the prices hold at the support zone?
There could be a small bounce but I guess prices are likely to fall further; this is due to the present market dynamics and trapped traders. To understand more about trapped traders, checkout the video given below.
What do you think about stock? Leave your thoughts in the comment. Let’s see.
