Samvardhana Motherson International Limited (MOTHERSON) Stock - Complete Technical Analysis - Oct 07, 2024

MOTHERSON Stock Analysis: Key Levels & Trading Insights for October 2024

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.

Analyzing Samvardhana Motherson International Limited (MOTHERSON) stock, we observe that it is currently trading at 199.05, which is 8.27% below its recent 52-week high of 216.99 reached on September 27, 2024. Conversely, this price is 129.32% above its 52-week low of 86.8 from November 28, 2023, indicating significant recovery over the year.

In terms of recent price action, the stock has shown a volatile behavior, especially in the last five trading sessions. There was a notable surge on October 1, where the price opened at 212.00, reaching a high of 214.45 before closing at 210.75. However, following this peak, the stock faced a sudden drop, closing at 199.05 today after experiencing a high of 203.96 earlier. This suggests the potential for a bearish reversal given the recent weakness in price.

Key technical indicators provide further insight: the RSI is at 48.17, indicating the stock is nearing neutral territory, while the MACD at 3.39 suggests a potential for upward momentum but requires confirmation. The ADX at 20.75 indicates a weak trend, suggesting traders should be cautious. The current price is below several moving averages, including the EMA and SMA, which may serve as resistance levels, particularly around 204.45 (10-day EMA) and 207.31 (10-day SMA).

Support levels can be identified around the classic pivot S1 at 189.98, which aligns with the low from the recent trading days. Traders should watch for a break below this level for confirmation of further bearish momentum. Conversely, resistance at 203.49 (classic pivot P) and the 10-day EMA could act as barriers for upward price movements.

In summary, MOTHERSON is in a delicate position where traders must navigate volatility and keep an eye on critical support and resistance levels. A close watch on the price action and accompanying indicators will be essential to making informed trading decisions.