Amara Raja Energy & Mobility Limited (ARE&M) Stock - Complete Technical Analysis - Sep 19, 2024

Amara Raja Energy Stock Analysis Key Support & Resistance Levels ARE&M

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.

Amara Raja Energy & Mobility Limited (ARE&M) is currently trading at 1,373, well below its 52-week high but significantly above its 52-week low, indicating a sharp recovery in the stocks price action. The technical indicators paint a bearish picture in the short term. With the RSI showing oversold conditions, the stock could be primed for a potential bounce, though the low ADX suggests the current trend lacks strong momentum. The MACD is in negative territory, signaling continued bearish momentum, and the Awesome Oscillator confirms this downtrend with negative values.

On the moving average front, ARE&M is trading below its short-term and medium-term EMAs and SMAs, suggesting that the bears are currently in control. This is also supported by the negative readings in the Stochastic Oscillator, which further suggests that the stock is in a correction phase.

In terms of support and resistance, the stock has strong support near 1,341, which aligns with key moving averages and recent price lows. If this level holds, we could see a reversal. On the upside, the stock faces resistance around the 1,456 level. A break above this could lead to further gains toward the 1,500 range. Traders should watch these key levels closely while monitoring volume and volatility to gauge potential reversals.