Price Action Trading — Sun Pharma

Rachit Jain
Sep 7, 2018 · 2 min read

Shares of Sun Pharmaceutical fell over 5 percent on Friday morning on buzz of observations being issued by the US drug regulator for its Halol plant.

Money Control website screenshot

As a technical trader, we are less concerned about news, because charts reflects everything.

As per Dow Theory : An individual stock’s price reflects everything that is known about the security. As new information arrives, market participants quickly disseminate the information and the price adjusts accordingly. Likewise, the market averages discount and reflect everything known by all stock market participants.

At 9.15AM general trading starts and sunpharma opens gapdown when stock opens gapdown generally a panic was experienced in the market among people and their comes a psychological play with price action, below is the picture of sunpharma trade based on price action. Charts are self explanatory, if any doubt comes one ask the same on twitter. https://twitter.com/rachitpjain

Sun Pharma Chart-5MIN

News Link : https://www.moneycontrol.com/news/business/markets/sun-pharma-falls-5-on-report-of-co-getting-6-observations-by-us-fda-for-halol-unit-2927441.html

Follow me on Twitter for more market related stuffs : https://twitter.com/rachitpjain

Written by

Trader who is sharing his Technical Analysis knowledge.

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