Coforge Limited (COFORGE) Stock - Complete Technical Analysis - Sep 26, 2024

Coforge Limited Technical Analysis: Key Levels & Trends for Traders

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.

Welcome to the technical analysis of Coforge Limited (COFORGE) stock. Currently trading at 6861, the stock shows a robust P/E ratio of 53.1, indicating strong market expectations for growth. With a notable ROCE and ROE of over 33%, Coforge reflects strong profitability and efficiency.

In terms of technical indicators, the Average Directional Index (ADX) stands at 34.35, suggesting a strong trend is present. The Relative Strength Index (RSI) at 61.45 indicates that the stock is approaching overbought territory, which could imply a potential pullback or consolidation phase soon. The Stochastic Oscillator shows a reading of 76.07, reinforcing the idea that the stock may be overbought in the short term.

Looking at moving averages, the stock is currently trading below both the 10 and 20-day Exponential Moving Averages, which may act as immediate resistance levels. The 50-day Exponential Moving Average sits at 6388.81, potentially serving as strong support if the price retraces.

Furthermore, the Awesome Oscillator at 470.41 supports a bullish sentiment, while the Momentum indicator shows a slight downward trend at -2.25, indicating some selling pressure. However, the Bull Bear Power at 79.29 remains positive, which is a good sign for buyers.

For traders, it will be crucial to monitor key support levels around the 50-day Exponential Moving Average and classic pivot support levels. Resistance appears to be near the recent highs of 7088.1. Keeping an eye on these levels will help in making informed trading decisions.