Zydus Wellness Limited (ZYDUSWELL) Stock - Complete Technical Analysis - Oct 10, 2024

Zydus Wellness Limited (ZYDUSWELL) Technical Analysis: Is a Reversal on the Horizon

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.

Zydus Wellness Limited (ZYDUSWELL) is currently trading at 1,964.05, representing a significant 20.93% drop from its 52-week high of 2,484.00 reached on July 30, 2024, and a 36.38% rise from its 52-week low of 1,440.15 recorded on March 18, 2024.

Support and Resistance Levels:

Support Levels: The immediate support is observed around 1,874.53 (Classic Pivot S1) and 1,738.02 (Classic Pivot S2). These levels may provide buying opportunities if the stock price retraces.

Resistance Levels: Key resistance is noted at 2,097.77 (Classic Pivot) and 2,234.28 (Classic Pivot R1). A breakthrough above these levels could indicate a bullish trend.

Price Trends:

The recent price action indicates a bearish trend, with the stock showing indecision characterized by the Doji and Spinning Top patterns today, closing at 1,964.05 after a high of 1,974.15.

Additionally, the presence of the "Three White Soldiers" pattern suggests a potential bullish reversal despite the current bearish indicators.

Sudden Price Drops or Surges:

Over the past five trading days, the stock witnessed fluctuations, with the highest close being 1,964.05 today and the lowest at 1,890.15 earlier this week. Notably, the significant drop from 1,958.60 to 1,912.30 on October 7 highlights increased volatility.

Gaps in Price:

There are no substantial gaps noted in the recent price action, as the stock has been trading within a range, indicating a consolidation phase.

Volatility and Reversals:

The Average True Range (ATR) indicates increasing volatility, suggesting a potential for price reversals. The ATR readings have fluctuated over the past few days, reaching highs of 244.97, signaling increased market activity. This volatility may lead traders to anticipate sharp movements in either direction.

Technical Indicators:

The RSI is at 34.6, indicating potential oversold conditions, while the MACD shows bearish momentum. The ADX at 28.32 suggests a strong trend, and the Stochastic %K indicates the stock is nearing oversold territory. These indicators collectively suggest a potential reversal, making it crucial for traders to monitor the upcoming sessions closely.

Overall, Zydus Wellness Limited is at a critical juncture, where investors should keep an eye on the support and resistance levels and watch for confirmation of a potential trend reversal.