CEAT Limited (CEATLTD) Stock - Complete Technical Analysis - Oct 10, 2024

CEAT Limited: Will It Break Out Technical Analysis & Trading Insights

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.

CEAT Limited is currently trading at 2,984, showing a robust performance with significant fundamental ratios. The stock has a P/E ratio of 18.0 and boasts an impressive ROCE of 20.7% and ROE of 18.8%. The recent price action suggests a potential for upward movement, particularly given the stock's proximity to its recent highs.

Analyzing the technical indicators, the Relative Strength Index (RSI) is at a neutral level, indicating the stock is neither overbought nor oversold, which suggests potential for future momentum. The Average Directional Index (ADX) indicates a strengthening trend, while the MACD level shows positive momentum, supporting bullish sentiment.

The presence of an inside candle pattern on October 7th indicates potential consolidation, with a tight trading range between the parent high of 3,089.90 and the low of 2,890.05. This pattern, along with the classic pivot point of 3,058.28, suggests a breakout could occur if the stock moves decisively beyond these levels.

Support is seen at the psychological level of 2,900, while resistance is anticipated near 3,050. Given the stock's volatility as indicated by the Average True Range (ATR), traders should watch for sudden price movements. Over the past week, we noted significant price swings, including a sudden drop on October 8th followed by a recovery, indicating active trading and potential for quick gains.

Traders should be cautious of the stock's reaction around resistance levels, as this could signal a reversal or breakout. Overall, CEAT Limited remains an interesting candidate for traders looking for both momentum and value, particularly with its dividend yield of 1.01%, which adds to its attractiveness as a long-term hold.