SRF Limited (SRF) Stock - Complete Technical Analysis - Oct 15, 2024

"SRF Limited Technical Analysis: Is a Reversal Coming Insights & Key Levels

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 of SRF Limited (SRF)

As of today, SRF Limited is trading at 2,351.40, reflecting a recent downtrend and indicating that the stock is currently 12.72% below its 52-week high of 2,693.95 reached on May 3, 2024, and 12.93% above its 52-week low of 2,082.25 recorded on October 26, 2023.

Support and Resistance Levels:

Support Levels:

The immediate support is seen around 2,355.77 based on classic pivot analysis.

A deeper support level can be identified near 2,213.68 (S2), which may attract buyers if the price declines further.

Resistance Levels:

The stock faces resistance at 2,502.38 (classic pivot P), and the R1 level at 2,644.47 is another significant resistance zone.

Additionally, the recent inside candle pattern indicates a price range between 2,292.30 and 2,366.95, where price action has consolidated over the past week.

Price Trends and Patterns:

Analyzing the recent price action, we see a spinning top candle today, indicating indecision among investors, with an open at 2,348.00 and a close at 2,351.40. This formation suggests that the market participants are weighing their options before making further commitments.

The bullish harami pattern observed in the previous trading session also implies potential for a reversal, but confirmation is required with a breakout above the high of the harami at 2,363.60.

Volatility Indicators:

The Average True Range (ATR) is currently high, indicating elevated volatility, which may lead to sudden price movements. Recent historical volatility suggests that price swings could be significant in either direction.

The MACD is in negative territory, indicating bearish momentum, while the RSI is below 40, suggesting that the stock is in the oversold region. This could imply that a rebound may occur if buying interest increases.

Momentum Indicators:

The momentum indicator is negative, indicating the stock has been losing strength over the past few trading sessions. This aligns with the bearish sentiment seen in other indicators, such as the Awesome Oscillator, which also indicates selling pressure.

Final Observations:

Investors should monitor the support level at 2,355.77 for potential bounce-back opportunities.

Conversely, if the stock breaks below this level, it may trigger further selling, with the next target being 2,213.68.

On the upside, a close above 2,366.95 could signal a trend reversal, attracting bullish sentiment and potentially moving towards the R1 resistance at 2,644.47.

In summary, while SRF Limited currently shows bearish indicators, the presence of bullish patterns such as the harami suggests that traders should remain vigilant for a potential recovery, especially if key resistance levels are breached.