LG Balakrishnan & Bros Limited (LGBBROSLTD) Stock - Complete Technical Analysis - Oct 11, 2024

Bearish Patterns Unveiled: LGBBROSLTD Technical Analysis & Price Predictions

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. Technical Analysis for LG Balakrishnan & Bros Limited (LGBBROSLTD)

Currently trading at 1,332, LGBBROSLTD has seen some significant movement recently. The stock is approximately 15.42% below its 52-week high of 1,574.8, achieved on September 2, 2024, and is 38.18% above its 52-week low of 963.9 recorded on October 25, 2023.

Support and Resistance Levels:

Support Levels: The immediate support can be identified around 1,281.6, as suggested by the classic pivot S1. Additional support is provided by the Fibonacci pivot S1 at approximately 1,332.78. The stock also has a robust support at the 200-day moving average level around 1,298.35.

Resistance Levels: On the upside, strong resistance is observed at the classic pivot point of 1,428.2 and the classic R1 at 1,531.4. The stock also faces challenges at the 100-day moving average of 1,348.96 and the Ichimoku Base Line at 1,383.53.

Technical Indicators:

The MACD is currently in the negative zone, indicating a bearish sentiment. This is complemented by the RSI value of 43.85, suggesting that the stock is nearing the oversold territory.

The Stochastic is also signaling potential downward momentum with %K at 27.21, suggesting the stock might be losing bullish strength.

The Average Directional Index (ADX) is at 16.53, indicating weak trend strength, which might mean the stock could enter a range-bound trading pattern.

The Average True Range (ATR) indicates a relatively high volatility with values fluctuating, confirming potential for price swings in either direction.

Chart Patterns:

The formation of a Bearish Engulfing pattern alongside an Evening Star pattern suggests a strong reversal signal. These patterns, occurring after a slight rally, may indicate that a downtrend could continue.

Price Trends and Gaps:

The recent price action shows a sudden drop from the high of 1,373.85 on October 9, to the recent low of 1,328 on October 11, indicating a potential bearish trend. There has also been an inside candle pattern formation recently, highlighting indecision in the market, which has lasted for three days, with price trading within the range of 1,373.85 and 1,319.05.

Volatility and Reversals:

Given the current volatility levels indicated by the ATR, traders should prepare for potential reversals. With significant bearish patterns and indicators aligning, a cautious approach is advised, particularly watching key support levels.

In conclusion, LGBBROSLTD appears to be under bearish pressure, and traders should keep an eye on key support levels around 1,281.6 and the pivotal resistance around 1,428.2 as indicators for future movements.