S Chand And Company Limited (SCHAND) Stock - Complete Technical Analysis - Oct 04, 2024

Technical Analysis of S Chand And Company: Potential Reversal Ahead

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.

Today, were diving into the technical analysis of S Chand And Company Limited (SCHAND) stock, currently trading at 212.13. The stock is significantly below its 52-week high of 335, suggesting potential bearish momentum. The Relative Strength Index (RSI) indicates that the stock is oversold, sitting at a low level, which could signal a potential reversal if buying interest emerges. The MACD is negative, further confirming the current bearish trend.

Recent price action shows a pattern of indecision, as observed with the Doji and Spinning Top candles indicating uncertainty among traders. With the stock's last recorded high at 215.50 and low at 210.10 today, we are seeing some resistance around the 215 level. If it breaks above this resistance, traders may see a test of higher levels near 219, which was the recent close. However, should the stock dip below the support level around 210, it could lead to further declines toward the 205 mark, near the 52-week low.

The Average Directional Index (ADX) shows weak momentum, supporting the idea of potential volatility in the short term. Volatility is further highlighted by the Average True Range (ATR), indicating larger price movements recently. Furthermore, the inside candle pattern from October 3rd emphasizes the importance of waiting for a breakout before taking significant positions.

In summary, traders should watch the 215 resistance and the 210 support closely. A breakout above 215 could indicate a potential recovery, while a fall below 210 might lead to further downside. Keep an eye on the momentum indicators and volume for confirmation.