Data Patterns (India) Limited (DATAPATTNS) Stock - Complete Technical Analysis - Oct 09, 2024

Technical Analysis of Data Patterns (India) Limited: Is a Reversal Coming

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. Data Patterns (India) Limited is currently trading at 2398.05, which is 34.39% below its 52-week high of 3655.00, reached on July 5, 2024. Conversely, the stock is 38.22% above its 52-week low of 1735.00 recorded on October 26, 2023. Analyzing the recent price action, today's trading session opened at 2390.00, reached a high of 2445.00, and closed at 2398.05, forming a Spinning Top candlestick pattern. This indicates indecision among investors and may suggest a potential reversal or continuation of the current trend.

Looking at the last five trading days, there have been some fluctuations, with significant price movements, particularly on October 8, where the stock opened at 2237.00 and reached a high of 2388.70 before closing at 2377.15. This demonstrates a recovery phase after recent selling pressure. The Average True Range (ATR) indicates a moderate level of volatility, averaging around 85, suggesting traders should remain cautious.

On the technical front, the stock is currently trading below multiple exponential and simple moving averages, including the 50 and 100-day EMAs, indicating a bearish trend. The MACD is negative, further supporting a bearish outlook. However, the RSI indicates the stock is approaching oversold territory at 39.36, which might signal a potential bullish reversal in the near future if buying interest increases.

Support is identified around 2130.53, derived from Classic Pivot S1, while resistance is expected near 2482.27, based on Classic Pivot levels. Traders should watch for breakouts above these levels for potential trend reversals. In summary, Data Patterns appears to be in a consolidation phase, with indecision in the market and mixed signals from various indicators. Traders should be prepared for possible volatility as the stock navigates through this period of uncertainty.