Bandhan Bank Limited (BANDHANBNK) Stock - Complete Technical Analysis - Oct 08, 2024

Bandhan Bank Limited: Is a Bullish Reversal on the Horizon Technical Analysis

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. Currently, Bandhan Bank Limited is trading at 187.66, significantly down 28.67% from its 52-week high of 263.1, which was reached on January 4, 2024. The stock's recent performance shows a clear bearish trend, indicated by the last few days of trading, with notable price movements and patterns. A piercing pattern was identified, suggesting a potential bullish reversal, along with the morning star pattern, which further confirms a shift in momentum.

In terms of technical indicators, the Average Directional Index (ADX) is at 17.71, indicating a weak trend, while the Relative Strength Index (RSI) at 37.14 suggests that the stock is approaching oversold conditions. The Stochastic %K and Stochastic RSI levels are extremely low, which might hint at an upcoming price rebound. Meanwhile, the MACD is negative, highlighting bearish momentum in the short term.

Support levels can be observed at 180.83 and 169.15, while resistance is seen around 201.63 and 204.08. The stock has also recently exhibited an inside candle pattern, with the parent high and low established over the last two days at 192.35 and 182.55, respectively. This indicates a period of consolidation, and traders should watch for a breakout above 192.35 to confirm further bullish momentum.

Volatility remains a key factor, with the Average True Range (ATR) indicating heightened price fluctuations in recent trading days. The stock's trading below several moving averages, including the 50-day and 200-day EMAs, further emphasizes the bearish trend. Traders should be cautious, and a close monitoring of the key resistance levels is recommended as the stock attempts to stabilize.

In conclusion, Bandhan Bank is showing signs of potential recovery, but confirmation through key resistance breaks is essential for a bullish outlook. Keeping an eye on the support levels will be crucial for those looking to make informed trading decisions.