SHREE CEMENT LIMITED (SHREECEM) Stock - Complete Technical Analysis - Oct 04, 2024

Shree Cement Technical Analysis: Can It Bounce Back SHREECEM 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.

Technical Analysis of SHREE CEMENT LIMITED (SHREECEM)

Current Price: 26,034.20

Shree Cement Limited is currently trading at 26,034.20, which is approximately 15.30% below its 52-week high of 30,737.75, reached on February 1, 2024, and 9.85% above its 52-week low of 23,700.00, hit on June 4, 2024.

Support and Resistance Levels:

Key support levels can be identified around 25,865.00 (recent low) and further down at 25,149.73 (Classic Pivot S1). Resistance is seen at 26,500.00 (recent high) and 27,009.03 (Classic Pivot R1).

Price Trends:

The stock has shown some volatility over the past week, with fluctuations indicating a cautious sentiment among investors. The recent closing price at 26,034.20 suggests a slight downward trend as the price dipped from the previous days close of 26,259.20. A notable gap can be observed between the open price of 26,370.10 and the close of 26,034.20 on October 4, indicating a sudden drop that could attract buyers at lower levels.

Sudden Price Drops or Surges:

Over the last week, there has been a sudden drop observed on October 4, where the price fell sharply from 26,370.10 to close at 26,034.20. The high of 26,500.00 reached earlier in the day suggests selling pressure at this resistance level. Conversely, the stock showed resilience on September 30, recovering from a low of 25,907.70 to close at 26,308.90.

Gaps in Price:

The price gaps observed in the last week are crucial. The opening price on October 4 was significantly higher than the previous close, highlighting the market's initial bullish sentiment which quickly reversed, leading to a close below the opening. This gap might create further bearish sentiment if not addressed quickly.

Volatility and Reversals:

The Average True Range (ATR) indicates considerable volatility, with the price experiencing swings typical for a stock in this segment. The recent volatility, along with the bearish reversal patterns, could signal that traders may look for shorting opportunities if the price breaks below support levels, especially the pivot points. The ADX is currently at 14.91, indicating a weak trend, suggesting that the stock could remain range-bound in the short term.

Technical Indicators Overview:

RSI (14) is at 53.81, suggesting the stock is neither overbought nor oversold, indicating a potential for further movement in either direction.

MACD indicates bullish momentum; however, traders should watch for any crossover that could signal a reversal.

Stochastic Oscillator is currently high at 80.65, indicating that the stock may be overbought and could see a pullback.

Overall, while SHREECEM has shown resilience at higher levels, traders should watch the support levels closely to gauge potential reversals or further declines. Price movements around the classic pivot points will be key indicators of future trends.