Supreme Industries Limited (SUPREMEIND) Stock - Complete Technical Analysis - Sep 25, 2024

Supreme Industries Stock Analysis: Bearish Trends and 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. Let's delve into the technical analysis of Supreme Industries Limited, currently trading at 5,229.60. The stock has experienced a bearish pattern, specifically a "Three Black Crows" formation, indicating potential downward pressure. This could be a signal for traders to exercise caution. The Relative Strength Index is hovering around 42.71, suggesting the stock is approaching oversold territory, while the Stochastic indicators indicate a similar sentiment.

On the moving averages front, the stock is trading below the exponential moving averages for both the short and medium term, which reinforces the bearish outlook. The 10-day and 20-day EMAs are positioned at 5,367.38 and 5,360.35, respectively, while the 50-day EMA stands at 5,381.36. This indicates the potential for continued selling pressure if the current price remains below these levels.

Support levels are evident at 5,211.42 from the Camarilla pivots and 5,002.69 from Fibonacci pivots, indicating potential zones where buying interest may return. On the other hand, resistance levels to watch are at 5,358.08 from the Camarilla pivots, which may pose challenges for upward movement.

The Average Directional Index is relatively low at 13.08, suggesting a lack of trend strength, which could mean that the stock might experience sideways movement in the short term. Additionally, with the stock trading 19.05% below its 52-week high of 6,460, there's room for price recovery, but the current sentiment remains cautious. Investors should keep an eye on the upcoming price action, especially if it approaches the aforementioned support levels, as this could signal potential entry points for a rebound.

In summary, traders should approach Supreme Industries Limited with a focus on support at 5,211.42, while being wary of resistance around 5,358.08. Monitoring the technical indicators will be essential to gauge the potential for recovery or further decline.