📈 BHARAT DYNAMICS LTD | Supply-Demand Flip Play with Volume Spike
📅 Date: May 09, 2025
📈 Timeframe: 15-Minute
🔍 Stock: BDL (NSE)
📊 **Price Action Update (Today):**
BDL opened strong at 1455 and rallied till 1595 before slipping down from a previously tested **Supply Zone (1547.40 – 1576.00)** The intraday move witnessed a sharp bullish rally from sub-1,455 levels, only to reverse sharply from the overhead supply. This creates a textbook example of **supply rejection after a demand-driven impulse**. The candle near close reflects a high-wick bearish rejection.
🧠 **Technical Overview:**
Today’s session was a high-volatility play showcasing both demand and supply dynamics. A **Possible Demand Zone (1447.30 – 1460.90)** emerged from a sharp buying reaction, indicating strong institutional interest. The price shot up almost ₹100 points in a short span with surging volumes, testing the overhead **Retested Supply Zone**, which held firm — confirming sellers’ presence. This makes the area between **1547 and 1576** a critical resistance for future rallies. Until broken decisively, traders should remain cautious about fresh longs at higher levels.
🧩 **Chart Pattern Insight:**
BDL’s 15-min chart displays a classic **Demand-to-Supply Flip** — a rally from demand, quick run-up, and sharp rejection at a pre-marked supply. This is often referred to as a “trap move” where late buyers are caught at highs. The clean volume spike at the breakout and immediate rejection within the supply zone is a common pattern seen in smart money distribution phases. Traders can look for potential **shorting setups** if the price re-enters the supply with weak momentum or **buying opportunities near the demand zone**, only with volume confirmation.
🧱 **Support & Resistance Analysis:**
* 🔼 **Resistance (Supply Zone):** 1547.40 – 1576.00
* 🔽 **Support (Demand Zone):** 1447.30 – 1460.90
A breakout above 1576 with strong volume can invalidate the supply zone. Until then, this remains a selling area. On the downside, if the price revisits the demand zone, it may offer a low-risk buying opportunity — but only if it holds with bullish candles and rising volume.
🔍 **Volume Analysis:**
The volume surged dramatically on the rally towards the supply zone, showing panic buying or aggressive short covering. The final rejection candle also saw elevated volume, which adds weight to the **supply zone rejection thesis**. Prior candles had lower volume, indicating absorption near lows and sudden spike into resistance. This is a signature behavior of “liquidity grabs.”
📌 **Educational Insight:**
This chart provides a clean **example of how price reacts to supply and demand zones**, especially intraday. Demand zones are best used for potential long setups only after a bullish confirmation, while supply zones can be used for shorts or to exit longs. These zones act as emotional points — where institutions look to trap retail traders. For intraday traders, this scenario shows why waiting for confirmation is key before entering trades around such zones.
⚠️ **Disclaimer:**
This analysis is for educational purposes only and does not constitute any investment advice or stock recommendation. Please consult with your financial advisor before taking any trading decisions. This post complies with SEBI regulations and is intended to promote financial literacy.
📅 Date: May 09, 2025
📈 Timeframe: 15-Minute
🔍 Stock: BDL (NSE)
📊 **Price Action Update (Today):**
BDL opened strong at 1455 and rallied till 1595 before slipping down from a previously tested **Supply Zone (1547.40 – 1576.00)** The intraday move witnessed a sharp bullish rally from sub-1,455 levels, only to reverse sharply from the overhead supply. This creates a textbook example of **supply rejection after a demand-driven impulse**. The candle near close reflects a high-wick bearish rejection.
🧠 **Technical Overview:**
Today’s session was a high-volatility play showcasing both demand and supply dynamics. A **Possible Demand Zone (1447.30 – 1460.90)** emerged from a sharp buying reaction, indicating strong institutional interest. The price shot up almost ₹100 points in a short span with surging volumes, testing the overhead **Retested Supply Zone**, which held firm — confirming sellers’ presence. This makes the area between **1547 and 1576** a critical resistance for future rallies. Until broken decisively, traders should remain cautious about fresh longs at higher levels.
🧩 **Chart Pattern Insight:**
BDL’s 15-min chart displays a classic **Demand-to-Supply Flip** — a rally from demand, quick run-up, and sharp rejection at a pre-marked supply. This is often referred to as a “trap move” where late buyers are caught at highs. The clean volume spike at the breakout and immediate rejection within the supply zone is a common pattern seen in smart money distribution phases. Traders can look for potential **shorting setups** if the price re-enters the supply with weak momentum or **buying opportunities near the demand zone**, only with volume confirmation.
🧱 **Support & Resistance Analysis:**
* 🔼 **Resistance (Supply Zone):** 1547.40 – 1576.00
* 🔽 **Support (Demand Zone):** 1447.30 – 1460.90
A breakout above 1576 with strong volume can invalidate the supply zone. Until then, this remains a selling area. On the downside, if the price revisits the demand zone, it may offer a low-risk buying opportunity — but only if it holds with bullish candles and rising volume.
🔍 **Volume Analysis:**
The volume surged dramatically on the rally towards the supply zone, showing panic buying or aggressive short covering. The final rejection candle also saw elevated volume, which adds weight to the **supply zone rejection thesis**. Prior candles had lower volume, indicating absorption near lows and sudden spike into resistance. This is a signature behavior of “liquidity grabs.”
📌 **Educational Insight:**
This chart provides a clean **example of how price reacts to supply and demand zones**, especially intraday. Demand zones are best used for potential long setups only after a bullish confirmation, while supply zones can be used for shorts or to exit longs. These zones act as emotional points — where institutions look to trap retail traders. For intraday traders, this scenario shows why waiting for confirmation is key before entering trades around such zones.
⚠️ **Disclaimer:**
This analysis is for educational purposes only and does not constitute any investment advice or stock recommendation. Please consult with your financial advisor before taking any trading decisions. This post complies with SEBI regulations and is intended to promote financial literacy.
Trade closed manually
Supply zone exhausted......Bullish move activated and Booked
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.