Zomato Limited (ZOMATO) Stock - Complete Technical Analysis - Sep 24, 2024

Zomato Stock Analysis Is It Time to Buy or Wait Zomato Technical Analysis 2024

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. Zomato Limited (ZOMATO) is currently trading at 291.70, just 2.20% below its 52-week high of 298.25, indicating that it is in a bullish zone but could also face strong resistance near these levels. The stock has shown a remarkable rise of 198.41% from its 52-week low of 97.75, indicating strong momentum.

Technical Overview:

Support & Resistance Levels: Based on various pivot points, the immediate support levels are around 253 (Fibonacci S1) and 225 (Classic S1), while strong resistance is seen near 306 (Fibonacci R2) and 331 (Woodie R3).

Moving Averages: Zomato is comfortably trading above its 50-day and 100-day Exponential Moving Averages (EMA) at 254 and 230, respectively. This indicates strong support and a bullish trend. Additionally, the 200-day EMA at 196 further validates the long-term positive trend.

MACD: The MACD line is well above the signal line, signaling bullish momentum, which indicates that the stock might continue its upward trajectory.

RSI: The RSI level is near 66, indicating that the stock is approaching an overbought territory. Caution is advised as this could trigger some selling pressure in the near term.

ADX: The ADX is around 39, reflecting strong trend strength, but traders should be cautious as higher ADX levels can lead to potential reversals.

Stochastic Indicators: Both Stochastic %K and Stochastic RSI Fast are showing overbought conditions, suggesting the possibility of a short-term correction.

Chart Patterns: The Bearish Engulfing and Evening Star patterns indicate a potential trend reversal. This aligns with the overbought indicators, so short-term corrections are possible before the stock resumes its upward trend.

Other Indicators: The Awesome Oscillator and Commodity Channel Index are showing positive signals, reinforcing the ongoing bullish momentum.

Conclusion:

While Zomato is currently in a strong uptrend, traders should watch for potential pullbacks due to overbought conditions indicated by RSI and Stochastic. Strong support is seen around 253 and 225, while resistance lies near 306 and 331. A short-term correction could provide a better entry point for long-term investors.

Key Takeaways:

Support Levels: 253, 225

Resistance Levels: 306, 331

Trend Indicators: Bullish momentum, but overbought conditions suggest caution.