Salasar Techno Engineering Limited (SALASAR) Stock - Complete Technical Analysis - Dec 20, 2024

SALASAR: Indecision at Support - What's Next

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.

Salasar Techno Engineering (SALASAR), currently trading around 15, has experienced a substantial decline from its 52-week high of 33 and is well above its 52-week low of 11. Recent price action reveals indecision, marked by the formation of Doji and Spinning Top candlestick patterns, suggesting a potential balance between buying and selling forces. The stock is trading below its short-term moving averages (10 and 20-day EMAs and SMAs), and also below its 30, 50, 100 and 200 day moving averages, indicating a prevailing bearish trend. The RSI is below 35, suggesting weak momentum, but not extremely oversold conditions. The MACD is negative, reinforcing the bearish sentiment. However, the ADX is around 24 indicating a moderate trend strength. Traders should monitor for a decisive break above the resistance zone around 15.5-16, where several moving averages converge, for a potential trend reversal. Support can be found around the recent low of 14.75. The recent candlestick patterns suggest a possible short-term pause in the downtrend. Traders should proceed cautiously and await a clear breakout above the resistance zone before initiating long positions. A break below the support could lead to further downside.