Relaxo Footwears Limited (RELAXO) Stock - Complete Technical Analysis - Oct 08, 2024

Relaxo Footwears Stock Analysis: Potential for Reversal or Continued Decline

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. Let's dive into the technical analysis of Relaxo Footwears Limited, currently trading at 792.60. The stock is facing notable resistance at around 804 and 818, with support levels identified at 790 and 767. Analyzing the price action, we observe a recent bearish trend following a high of 959, now trading 17.35% below this peak. The last five days show fluctuating highs and lows, indicating volatility, particularly on October 4, when the price peaked at 808.70 before closing lower at 798.35.

The Average Directional Index (ADX) suggests a weak trend, below the threshold that typically indicates a strong directional movement. The Relative Strength Index (RSI) is currently below the neutral level, signaling that the stock may be in an oversold condition, potentially indicating a buying opportunity. Additionally, the Stochastic oscillator also points to oversold conditions, reinforcing this sentiment.

Recent candlestick patterns reveal a Morning Star, indicating a bullish reversal signal, while the Piercing Pattern suggests potential for price recovery. However, with MACD in negative territory, caution is warranted. The Awesome Oscillator is also in the red, suggesting downward momentum, which traders should consider.

In summary, while Relaxo Footwears Limited shows potential bullish reversal signals and is currently oversold, traders should remain vigilant due to the existing negative momentum indicators. A close watch on resistance and support levels, alongside the observed patterns, could provide opportunities for traders seeking to navigate this volatile market.