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Price Action shows Climax movement and Bears Exhaustion in India Bulls Housing Finance

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India Bulls Housing finance is one of the volatile stocks in financial sector. Recent panic and turmoil in NBFC has created a major impact on Share prices. Since the beginning of September 2018, IBHF lost around 40% of its market value. If we look at the daily chart, its pretty obvious to spot the downtrend. The trend has begun in Mid-August and still intact, share prices tumbled from1400 to 700over the period.

India Bulls Housing Finance Price Action Analysis on Daily chart

Even though the downtrend started around Mid-August, Selloff intensified after share prices broke thekey level at 1000. Price movement correlated with market panic and IL&FS events, adding fuel to the fire. We could see large candlestick wicks because of these Event shocks. In lower time frame, all these formations representEvent spike Pattern.

From the beginning of October, Momentum values (measure by MACD) declined sharply. Price action and momentum correlated with each other. Recent trend leg formations resembleclimax moveswhich may lead to exhaustion of Sellers. On the fundamental side, a recent report claims that India bulls Housing finance is planning to sell some of itsstakes from Oak north, market participants will perceive this as positive news which could turn around the share prices.

In coming days, we may get some potentialcontrarian tradingopportunities in India bulls Housing finance. Short term traders and swing traders should add the stock to their watch list. Also keep an eye on Developing Price action.

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About the author

Balaji is a Trader, Investor and Self published Blogger. He wrties frequently on his website Balaji is specialised in applying systematic Price action trading strategies and Global Macro techniques on financial markets such as Equities, Dervatives, Futures and Bonds. He is well versed on both International and domestic markets and has trading experience of more than 8 years.  
As a trader his core purpose is to generate superior risk adjusted returns on consistent basis by applying Flexible risk managment combined with a Postive expectancy of Price action strategies. He writes passionately about Technical analysis, Trading strategies, Price Action setups and Global macro events. 
Apart from trading and Blogging, Balaji also mentors aspiring traders, Investors on becoming succesful in highly competative financial markets. He offers permium trading course on which he covers Price action trading methods, Institutional trading strategies and Macro trading.

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