My
last post on this stock was on the 21st July when the stock was
making a rally on increased volume. We expected the upmove to continue. However
the stock failed to sustain above the previous price rejection levels of 255. Soon the stock was struggling around a price
support level of 250. On the 3rd
we saw a wide spread “Effort to Fall” bar on very high volume braking the last support
level of 243 (Marked A on the chart). Obviously one would expect huge selling
pressure on this Bar. But the next day we a wise spread up bar closing high and
above the price support level (B).
Volume was still very high albeit not as high as the previous day. This
Bar indicates that there was lot of buying interest in the previous bar. In the
Wyckoffian terms this move (A-B) is clearly a shakeout. And the move of 17-18
July could be the secondary Test. Anyway looks like the SM is still in the
process of accumulating and we need to wait
for some more time for the markup phase.
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