Yuken India Limited (YUKEN) Stock - Complete Technical Analysis - Oct 03, 2024

Yuken India Limited Technical Analysis: Bearish Signals 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.

Yuken India Limited is currently trading at 1,176, reflecting a significant 25.77% decline from its 52-week high of 1,569.9 reached on July 11, 2024, while being 85.10% above its 52-week low of 629.55 recorded on February 13, 2024. The stock's P/E ratio stands at 93.9, indicating high investor expectations, though the ROCE and ROE are relatively modest at 8.57% and 6.15%, respectively.

Recently, an inside candle pattern formed on September 30, suggesting a potential price consolidation. The recent trading range has been between 1,152.05 and 1,217.3. Observing the last five trading sessions, the stock has shown fluctuations, with notable resistance around the 1,200 mark. The recent open at 1,200 indicated a potential rejection of higher levels, leading to a close at 1,165.30, which indicates selling pressure.

The average directional index (ADX) is at 19.29, reflecting weak trend strength, while the RSI at 37.39 suggests that the stock is in the oversold territory. Combined with a Stochastic %K of 19.34, this further confirms bearish momentum. The MACD is negative, indicating a bearish trend, and the Awesome Oscillator is also showing a declining momentum. Volatility appears to be increasing, as observed with the ATR readings, which suggest widening price ranges.

In summary, Yuken India Limited shows signs of bearish momentum with resistance near 1,200. Traders should monitor for a potential reversal or a continuation of this trend, especially considering the weak ADX and oversold indicators. A breakout above the resistance could pave the way for a rally, while support is identified at 1,152.05.