Will Geojit Financial share listed on NSE go up or crash ? Let’s analyse it using Wyckoff’s market cycle theory and general technical analysis principles:
2006 to 2008 – The chart displays a significant Markup phase characterized by a steep upward trend, with prices reaching a pronounced peak. This suggests a period of high demand where prices were driven up rapidly.
2008 to 2012 – Following the peak, there is a sharp decline indicative of a Markdown phase, where prices plummeted dramatically, likely due to a significant increase in supply and a decrease in demand.
2012 to Mid-2014 – Prices then enter a prolonged Accumulation phase, where the market consolidates and prices move sideways. This phase typically indicates that informed investors may be starting to accumulate shares at lower prices.
Mid-2014 to 2018 – After the accumulation, another Markup phase is observed as prices start to rise, indicating a period of increased demand. The trend here is less steep than the previous markup phase but still significant.
2018 to Early 2020 – The prices peak and then enter what appears to be a Distribution phase, where there’s a top formation followed by a decrease in price. This typically signals that the stock may be overbought and larger operators could be distributing shares.
Early 2020 to 2022 – A significant Markdown phase occurs with a sharp decrease in prices, similar to the phase seen in 2008, indicating a strong presence of supply over demand.
2022 to Present – The chart shows a robust recovery, suggesting the beginning of an Accumulation phase, or possibly an early Markup phase if the upward momentum continues.
The recent green candles with increasing volume support the accumulation hypothesis, but the last candle has a wick on the upper side, indicating some selling pressure.
The latest five candles (presumably monthly candles) are important to consider:
- The rising prices with increasing volumes in the last green candles indicate buying interest and potential continuation of the current trend.
- The long upper wick on the last candle suggests that while there was an attempt to push the price higher, sellers also stepped in, preventing the candle from closing at its highest point.
Based on the current state of the chart, “GEOJIT FINANCIAL S” is in an Accumulation phase with signs of early Markup.
The upward trend might continue if the buying interest persists. However, one must watch for potential resistance or selling pressure that could lead to a trend reversal or consolidation.
Last Update : 19/02/2024
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What is Wyckoff Cycle ?
It helps to understand the stages & phases of market. The four phases of the Wyckoff cycle are accumulation, markup, distribution, and markdown. They represent trading behavior and price action. Once the final markdown phase of the Wyckoff cycle is complete, a new accumulation phase will kick off a new cycle
