Power Finance Corporation Limited (PFC) Stock - Complete Technical Analysis - Dec 23, 2024

Power Finance Corporation Limited (PFC) Stock Analysis: Support, Resistance, and Key Indicators

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. Power Finance Corporation Limited (PFC) is trading at 453.30, which is currently 21.84% below its 52-week high of 580. The stock has shown significant volatility with a strong price fluctuation between 52-week high and low levels. Recent price action includes a bearish engulfing pattern, signaling potential downside. Yesterday, the stock opened at 479.90, tested a high of 483.75, then dropped to 469.75 before closing at 480.45. Today, PFC opened at 481.00, hit a high of 482.50, and then plummeted to a low of 451.00 before closing at 453.30. This sharp drop further highlights the stock's bearish trend.

Technically, the Average Directional Index (ADX) at 19.03 reflects weak trend strength, while the Relative Strength Index (RSI) at 32.74 shows the stock is nearing oversold territory. Despite this, the overall trend remains bearish. The Stochastic RSI at 0 indicates deep oversold conditions, suggesting that while the stock is undervalued, the prevailing market sentiment may still dictate further downside.

The MACD at 1.34 shows some positive momentum, but it isn't enough to reverse the bearish trend. The Commodity Channel Index (CCI) is negative, reinforcing the negative price momentum. On the moving average front, the stock is trading below its 10-day and 20-day exponential moving averages, which are acting as resistance levels. The 10-day EMA stands at 489.6, and the 20-day EMA is at 491.1.

Regarding support, the stock could find initial support around 450.28, which aligns with the Classic Pivot S1. A breakdown below this level may push the price toward 432-405. On the upside, resistance levels are found around the 480-490 range. With an ATR of 14.97, there's moderate volatility in the stock, and traders should be prepared for sharp movements.

In conclusion, PFC stock is currently in a bearish trend with weak momentum. While it's showing signs of being oversold, a strong reversal is unlikely without a break above resistance levels. Investors should look for confirmation of support around the 450 mark or consider taking positions only if the price starts showing signs of stabilization or reversal.