Thejo Engineering Limited (THEJO) Stock - Complete Technical Analysis - Dec 23, 2024

THEJO: Shooting Star - Bearish Reversal 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.

Thejo Engineering, currently priced at 2107, has experienced a significant decline from its 52-week high of 3707. The recent price action clearly indicates a downtrend, reinforced by the formation of a Shooting Star pattern, a bearish reversal signal, indicating selling pressure. The stock is trading below its short-term moving averages (10, 20, and 30 EMAs and SMAs). The 50, 100, and 200-period moving averages are significantly above the current price and will act as strong resistance levels. The Ichimoku Base Line is also near the current price and could provide some support. The RSI is below 40, indicating weakening momentum. The Stochastic oscillator is low, but not yet deeply oversold. The MACD is negative, confirming the bearish trend. Traders should exercise caution and avoid initiating long positions. A decisive break below the recent low could trigger further selling. A sustained move above the 20-period moving average would be necessary to suggest a potential short-term trend reversal.