Sanghvi Movers Limited (SANGHVIMOV) Stock - Complete Technical Analysis - Dec 19, 2024

SANGHVIMOV: Oversold but Downtrend Strong

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Sanghvi Movers' current price of approximately 314 presents a bearish technical outlook. The RSI is quite low, indicating oversold conditions. Both the Stochastic %K and Stochastic RSI are also very low, further confirming this oversold state. The MACD is negative, signaling a downtrend. The ADX is above 20, suggesting a strengthening downtrend. From a trading perspective, the price is trading below all key moving averages, which is a bearish sign. Key resistance can be seen around the cluster of moving averages, especially the 20 and 50-day EMAs, while support can be found near the recent low. Given the oversold conditions, a short-term bounce is possible. However, with the overall downtrend and strengthening trend strength as indicated by ADX, traders should be cautious. It's advisable to wait for confirmation of a reversal, such as a break above the moving averages, before considering long positions. A break below the recent low could lead to further downside. Recent ATR indicates decreasing volatility.