Bharat Wire Ropes Limited (BHARATWIRE) Stock - Complete Technical Analysis - Aug 30, 2024

Bharat Wire Ropes Ltd Technical Analysis Bearish Reversal Ahead Key Levels to Watch

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.

Bharat Wire Ropes Limited (BHARATWIRE) is currently trading at 285.75, showing a significant decline of 28.67% from its 52-week high of 400.6. On the upside, the stock is trading 27.77% above its 52-week low of 223.65. The stock's P/E ratio stands at 20.3, with a strong ROCE of 18.7% and ROE of 23.0%, indicating solid financial performance, though there's no dividend yield.

Technically, the stock is under pressure with bearish patterns like Bearish Engulfing and Evening Star suggesting potential downside. The RSI level suggests the stock is nearing overbought territory, while the Stochastic indicators reinforce this with a high %K and Stochastic RSI Fast levels, hinting at a possible pullback.

The MACD shows bullish momentum, but caution is advised as the ADX indicates a moderate trend strength. The Awesome Oscillator also supports positive momentum, yet the bearish chart patterns call for vigilance. The stock is trading near its exponential moving averages (EMAs) for the short term, with resistance expected around 294-302 levels, based on Pivot points. However, strong support is visible around 256-270 levels, which aligns with Fibonacci and Woodie Pivot support levels.

The Volume Weighted Moving Average (VWMA) and Hull Moving Average indicate that the stock is currently trading above these levels, showing near-term strength. The ATR suggests moderate volatility, so traders should be cautious about sudden price swings.

Given the bearish patterns and near-overbought conditions, traders might want to wait for a more defined signal before making any moves. Watch out for the support levels at 256-270 for potential entry points, and monitor resistance around 294-302, which may be challenging to break in the short term.