Finolex Cables Limited (FINCABLES) Stock - Complete Technical Analysis - Oct 09, 2024

Finolex Cables Analysis: Bearish Signals and Key Support Levels Explained

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.

Finolex Cables Limited is currently trading at 1295.05, reflecting a bearish sentiment in the market as it sits significantly below its 52-week high of 1700.0, reached in June 2024, and is also trading well above its 52-week low of 831.25. The stock recently formed a Bearish Engulfing pattern, which indicates potential weakness ahead, especially after witnessing a sudden drop from 1350.00 to 1295.05.

The technical indicators provide a mixed view. The MACD is in negative territory, suggesting a potential continuation of the bearish trend. Meanwhile, the RSI is at 34.62, indicating the stock is nearing oversold conditions, which could lead to a short-term rebound. However, the ADX is at 17.51, indicating a weak trend, and the Average True Range shows rising volatility, which may lead to erratic price movements.

The stock's proximity to various moving averages further highlights the trend. The 10-day EMA is at 1366.34, while the 50-day EMA is at 1427.15. The recent closing price below these averages indicates bearish pressure. The key support level appears at 1285.00, with further support at 1257.03. Resistance levels are evident around 1350.00 and 1400.00.

Traders should remain cautious; the combination of a bearish chart pattern and negative momentum could lead to further declines. It's essential to watch the price action closely around support levels and keep an eye on potential rebounds as the stock approaches oversold conditions. Adopting a watchful stance for any signs of reversal could be beneficial for traders looking to engage with this stock.