Welspun Living Limited (WELSPUNLIV) Stock - Complete Technical Analysis - Oct 09, 2024

Welspun Living Ltd Stock Analysis: Key Insights & Trading Signals for 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 Welspun Living Limited (WELSPUNLIV) stock, currently priced at 171.50, reveals several crucial insights for traders. The stock is trading 19.46% below its 52-week high of 212.95, reached on August 29, 2024, and 48.29% above its 52-week low of 115.65, noted on October 9, 2023. Recent price action shows a notable recovery from the lows, indicating potential buying interest.

The Average Directional Index (ADX) at 16.79 suggests a weak trend, while the Relative Strength Index (RSI) at 48.27 indicates that the stock is neither overbought nor oversold, potentially offering a balanced entry point. Stochastic indicators suggest a slightly bearish momentum, as seen with the Stochastic %K at 31.19.

The stock's moving averages also tell an interesting story. The Exponential Moving Average (EMA) values are clustered just above the current price, specifically the EMA 10 at 167.82 and EMA 20 at 171.63, acting as immediate resistance levels. In contrast, the Simple Moving Averages (SMA) provide support, with the SMA 50 at 180.82 serving as a significant barrier above.

For short-term traders, watching the pivot points is essential, especially the Classic Pivot at 173.28, which could act as a critical level to gauge the price direction. Recent trading has shown some volatility, with price swings, but notable gaps and surges from lows reflect a possible upward trend in the near term. Traders should be cautious of sudden drops given the recent price fluctuations and volatility indicated by the Average True Range (ATR), which sits at approximately 8.94.

In summary, WELSPUNLIV presents a mixed technical picture with potential for upside if it can break above immediate resistance levels, making it crucial to watch for key signals in the coming days.