Wockhardt Limited (WOCKPHARMA) Stock - Complete Technical Analysis - Oct 10, 2024

Wockhardt Limited Stock Analysis: Key Support & Resistance Levels for Traders

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.

Wockhardt Limited, currently trading at 949.30, is showing mixed signals in its technical analysis. The stock is approximately 13.52% below its recent 52-week high of 1097.7, reached on September 2, 2024, and significantly up 345.16% from its 52-week low of 213.25 on October 26, 2023. This drastic movement indicates high volatility and a strong recovery from its lows. Over the last five trading days, the stock has shown notable fluctuations, with recent highs reaching 981.00 and lows of 940.10, suggesting a trading range that traders should monitor closely.

The MACD indicates bearish momentum, while the RSI is hovering around 42.91, suggesting that the stock is nearing the oversold territory. The ADX at 15.12 indicates a weak trend strength, signaling caution for trend-following strategies. A closer look at the moving averages shows that the short-term EMAs (10 and 20 days) are positioned above the longer-term averages, suggesting potential resistance at around 966.66. Additionally, the Classic Pivot Point of 1010.53 acts as a significant resistance level, while support can be identified at 923.37, which corresponds to the recent low.

The recent price action has demonstrated a few gaps and sudden drops, particularly with the low of 940.10 following a high of 981.00, indicating possible selling pressure or profit booking. The Average True Range (ATR) reflects considerable volatility, which could provide opportunities for intraday traders but requires careful risk management.

In summary, Wockhardt Limited is at a critical juncture. Traders should be vigilant around the support level of 923.37 and resistance at 966.66. The overall bearish sentiment from MACD and RSI indicates that potential downside risks exist, making it crucial to adopt a cautious approach in the current market scenario.