Will CDSL Go Up Or Crash & Current Market Cycle Stage Of The Stock !

You are currently viewing Will CDSL Go Up Or Crash & Current Market Cycle Stage Of The Stock !

The chart shows a monthly time-frame chart for CDSL Ltd. listed on the NSE.

Analyzing the monthly timeframe allows us to assess the broader market cycles according to Wyckoff’s methodology.

Here’s the step-by-step analysis based on the visible part of the chart:

 

Prior Trend (Before 2018): There isn’t much data visible, but there seems to be a sharp upward move suggesting a previous bullish phase.

 

2018 to Early 2020: The price action during this period appears to be in a range, indicating a possible accumulation stage. The significant price spread in early 2018 with higher volume could represent a selling climax (SC), followed by a period of sideways movement that indicates absorption of supply.

 

2020 to Early 2021: A strong markup phase emerges as prices rise sharply. This could be interpreted as the result of accumulation and the start of a new bullish phase. This phase is characterized by higher highs and higher lows, confirming the presence of demand.

 

Mid 2021: A notable surge in volume accompanies a price peak, suggesting this could be an upthrust (UT) or a buying climax (BC). This is often seen in the distribution phase, where smart money may begin offloading shares in anticipation of a downward phase (markdown).

 

Late 2021 to 2022: Post the volume surge and peak, the price begins to move sideways with some volatility, which could be indicative of a distribution phase. However, without a clear sign of a downward trend, it’s premature to conclude the start of the markdown phase.

 

2023 Onward: Prices resume an upward trend, suggesting that if the previous phase was distribution, it didn’t culminate in a full markdown. Instead, the price action could be interpreted as re-accumulation or a sign of strength (SOS), with the trend resuming its upward trajectory.

 

Latest 5 Candles (Mid to Late 2024): The most recent candles show continued upward movement with some wicks on top. These wicks could indicate some selling pressure, but the closing near the highs suggests buyers are still in control. No clear evidence of a reversal yet.

 

Based on this analysis, the market for CDSL currently appears to be in a bullish phase, either continuing the markup or experiencing re-accumulation after a failed distribution. The absence of a significant markdown phase after the volume surge in mid-2021 indicates that the overall market sentiment remains positive.

The latest candles do not show signs of a reversal or crash but warrant caution for potential selling pressure.

Continuous monitoring of volume and price action on a more granular timeframe (like weekly or daily) would be necessary to confirm these observations and anticipate any upcoming shifts in the market cycle