Sharda Motor Industries Limited (SHARDAMOTR) Stock - Complete Technical Analysis - Dec 20, 2024

SHARDAMOTR: Three Black Crows - Bearish Signal

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.

Sharda Motor Industries (SHARDAMOTR), currently trading around 1988, has experienced a significant decline from its 52-week high of 2952 and is substantially above its 52-week low of 1120. Recent price action reveals a bearish trend with the formation of a Three Black Crows pattern, indicating continued selling pressure. The stock is trading below its short-term moving averages (10, 20, and 30-day EMAs and SMAs) and also below its 50 and 100 day moving averages. However, the stock is currently trading around its 200 day moving average. The RSI is below 45, indicating weak momentum. The MACD is negative, further confirming the bearish sentiment. The ADX is low, indicating a weak trend. Traders should monitor for a decisive break below the 1980 level, which could trigger further downside. Resistance is observed around the 2030-2050 zone, where several moving averages converge. The Three Black Crows pattern, combined with the negative readings from the RSI and MACD, suggests a continuation of the downtrend. Traders should exercise caution and consider short positions if the support level is breached.