Zomato Limited (ZOMATO) Stock - Complete Technical Analysis - Oct 04, 2024

Zomato Stock Analysis: Is the Bullish Trend Here to Stay Technical Insights

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, Zomato Limited is trading at 275.3, showing a remarkable increase of 174.34% from its 52-week low of 100.35. However, it is currently 7.69% below the recent 52-week high of 298.25, reached just a few days ago on September 23, 2024. The stock exhibits significant price movements, indicated by recent fluctuations: from a low of 264.1 to a high of 277.85 within the last session. The price action also shows a bullish engulfing pattern, which could signal a potential reversal or upward momentum.

From a technical perspective, the Average Directional Index (ADX) at 30.42 suggests a strong trend, while the Relative Strength Index (RSI) at 52.99 indicates the stock is neither overbought nor oversold. The Stochastic oscillator is at 17.71, suggesting potential for upward movement. Furthermore, the MACD is positive at 5.02, which can indicate upward momentum as well.

Support levels to watch are around 270.65, which aligns with the Classic Pivot Point and could serve as a critical area for buyers. If the price falls below this level, it may test further support at 243.05. On the upside, resistance is found near the 300 mark, which could be a significant hurdle for the stock in the near term.

The volume-weighted moving average suggests that the stock's short-term performance is stable, with the 10-day exponential moving average at 276.84 just above the current price, indicating potential short-term resistance. The increasing volatility as seen from the Average True Range (ATR) signifies traders should be cautious, as sudden price drops or surges are possible.

Overall, Zomato presents a mixed outlook, with strong upward potential but also notable resistance levels. Traders should monitor price movements closely, especially near key pivot levels, to determine their entry or exit points.