Bombay Burmah Trading Corporation Limited (BBTC) Stock - Complete Technical Analysis - Sep 20, 2024

BBTC Stock Analysis: Bullish Harami & Key Levels Will BBTC Break 2700 Resistance

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. Bombay Burmah Trading Corporation Limited (BBTC) is currently trading at 2628.90, which is 8.01% below its 52-week high, while still maintaining significant growth, being 125.34% above its 52-week low. This shows the stocks ability to recover after hitting lower levels, and indicates strong support around 1166.65. The Relative Strength Index (RSI) stands at 54.64, reflecting a neutral zone, suggesting neither overbought nor oversold conditions at present. The Average Directional Index (ADX) at 30.67 indicates a moderately strong trend, although it hasn't yet reached the level that defines a very powerful momentum.

BBTC has shown a Bullish Harami pattern, signaling potential upward reversal. This is further supported by the MACD, which remains positive, showing sustained bullish momentum. However, with the stochastic RSI at a low level of 13.21, there is a possibility of short-term consolidation before another upward breakout. Traders should note that the Awesome Oscillator displays positive momentum but is showing signs of decreasing strength, suggesting cautious optimism.

Price action analysis reveals the stock is trading above its 20-day exponential moving average (EMA), which currently serves as immediate support around 2609.19. Strong resistance is seen around the 2700 levels, corresponding to both Fibonacci and Woodie pivots, indicating that a breach above this level could trigger further buying pressure, while failure to do so may lead to a consolidation.

Traders can watch for a breakout above the R1 resistance level near 2719.23 for potential further upside. On the downside, strong support lies near 2400, where significant buying activity has previously emerged. The inside candle pattern observed indicates that volatility could increase in the coming sessions, making BBTC a stock to keep a close eye on for short-term traders.