TVS Srichakra Limited (TVSSRICHAK) Stock - Complete Technical Analysis - Dec 20, 2024

TVSSRICHAK: Reversal Signs or Bearish Continuation

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.

TVS Srichakra (TVSSRICHAK), currently trading around 3626, is considerably below its 52-week high of 4900 and just above its 52-week low of 3469. Recent price action reveals potential bullish reversal signs with the formation of a Bullish Engulfing and Morning Star pattern. However, the stock is trading below all its key moving averages (10, 20, 30, 50, 100, and 200-day EMAs and SMAs), indicating a prevailing downtrend. The RSI is below 40, indicating weak momentum. The MACD is negative, confirming the bearish sentiment. The ADX is low, indicating a weak trend currently. Traders should monitor for a decisive break above the resistance zone around 3700-3750, where many moving averages converge. This zone would act as strong resistance. Support can be found around the recent low of 3470. While the recent candlestick patterns offer a glimmer of hope for a reversal, the overall technical picture remains bearish. Traders should proceed cautiously and await a clear breakout above the resistance zone before considering long positions. A break below the support could lead to further downside.