Dhampur Bio Organics Limited (DBOL) Stock - Complete Technical Analysis - Oct 04, 2024

Analyzing Dhampur Bio Organics: Key Insights and Trading Strategies

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.

Technical Analysis of Dhampur Bio Organics Limited (DBOL)

As of October 4, 2024, Dhampur Bio Organics Limited is trading at 149.58, which is 18.68% below its 52-week high of 183.95, achieved on October 4, 2023, and 33.08% above its 52-week low of 112.40, recorded on June 5, 2024. The stock has recently shown volatility, with an inside candle pattern identified on September 23, 2024, indicating potential consolidation within a trading range defined by a parent high of 163.93 and a low of 137.06 over the last nine days.

Support and Resistance Levels

Key support is observed around the classic pivot support levels, with significant support around 137.66, and further below at 115.36. Resistance is found near the classic pivot resistance level of 173.09, and major resistance levels are around 186.22.

Indicators Analysis

Analyzing the momentum indicators, the MACD is currently above the signal line, suggesting bullish momentum, while the RSI at 56 indicates a neutral position, hinting at potential upward movement without being overbought. The ADX at 30.67 suggests a strong trend in place, supporting the potential for continuation in the current price direction.

The recent trading session shows a pattern of lower highs and lower lows, with a noticeable price drop from 161.65 on October 3 to the current level, highlighting a bearish sentiment. However, the stochastic readings are approaching the overbought territory, indicating caution for long positions. The Average True Range (ATR) reflects increased volatility, which traders should monitor closely for potential reversals.

Overall, traders should be cautious of sudden price movements, especially given the recent price trends and volatility, and consider using tight stop-loss strategies around key support levels to manage risk effectively.