Fusion Micro Finance Limited (FUSION) Stock - Complete Technical Analysis - Dec 19, 2024

FUSION Stock: Downtrend - Avoid or Short

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.

Fusion Micro Finance's current price of approximately 180 reflects a significant decline from its 52-week high. The recent price action clearly indicates a downtrend. The RSI, currently below 40, indicates bearish momentum. The Stochastic %K and Stochastic RSI are also low, suggesting oversold conditions, which sometimes precedes a short-term bounce. The MACD is negative, confirming the existing downtrend. The ADX, around 22, suggests a developing trend. From a trading perspective, the 10-day and 20-day EMAs, currently near 185 and 187, respectively, represent key resistance levels. Support can be found around the recent low near 178 and the Ichimoku Base Line near 181. A break below this support could lead to further downside. Although the oversold stochastic indicators might suggest a potential short-term bounce, the prevailing downtrend and negative MACD indicate that any such bounce is likely to be short-lived. Traders should remain cautious and consider short positions on rallies towards resistance. The recent ATR has been volatile suggesting higher risk.