Lux Industries Limited (LUXIND) Stock - Complete Technical Analysis - Oct 11, 2024

Lux Industries Limited Technical Analysis Support, Resistance & Trends Explained

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.

Today, we delve into the technical analysis of Lux Industries Limited, trading at 2,073. Recent price action shows a Bearish Engulfing pattern, indicating potential downward momentum. The stock opened today at 2,110, with a low of 2,060.15 and a high of 2,138.3, closing at 2,073.15. This marks a continuation of the downward trend seen over the past few days, following a peak at 2,239.65 on October 7th.

Support and Resistance Levels:

Support Levels: The immediate support is observed around 2,060, which aligns with today's low. Further support can be seen at 1,885.48 from Classic Pivot S1, indicating a strong psychological barrier.

Resistance Levels: On the upside, resistance is identified at 2,177.72 (Classic Pivot), with a critical resistance area between 2,239.65 and 2,245.

Price Trends:

Over the last few trading sessions, the stock has shown a sudden drop from 2,239.65 to 2,073.15, indicating bearish sentiment. The price is currently 16.84% below its 52-week high of 2,493, achieved on August 6, 2024. Notably, Lux Industries has also surged 93.44% from its 52-week low of 1,071.75, indicating strong recovery, but recent price action suggests a potential reversal in momentum.

Gaps in Price:

There were no significant gaps observed in the recent trading days; however, the drop from 2,239.65 to 2,073.15 represents a gap down, highlighting potential selling pressure.

Volatility and Reversals:

The Average True Range (ATR) suggests high volatility, with a recent average around 1,267. The MACD is negative, signaling bearish momentum, while the RSI is at 43.32, indicating that the stock is nearing oversold territory. However, the Stochastic RSI reflects a bullish crossover, suggesting that short-term buying pressure could emerge if prices stabilize above the immediate support level.

Conclusion:

In summary, Lux Industries Limited is experiencing bearish trends with critical support at 2,060. Traders should watch for price action around this level for potential reversal opportunities. Key indicators such as MACD and RSI suggest a cautious approach, looking for signs of bullish momentum to confirm any upward moves.