Ashok Leyland Limited (ASHOKLEY) Stock - Complete Technical Analysis - Oct 15, 2024

Ashok Leyland Stock Analysis: Is a Reversal Coming Soon Key Levels & Patterns 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. Ashok Leyland is currently trading at 226, showing a slight pullback from recent highs, sitting 14.49% below its 52-week high. The stock has recently formed a Bearish Engulfing and Evening Star pattern, indicating potential downside risk in the short term. The RSI is hovering around 37.8, signaling that the stock is approaching an oversold region. The MACD is in negative territory, which suggests bearish momentum, and the ADX shows a strength of trend, implying that the current downtrend may continue. Stochastic levels show some recovery, but further confirmation is needed for a reversal.

Moving averages provide a mixed picture. The stock is trading below its 50-day and 200-day exponential moving averages, indicating the broader trend is still bearish. The immediate support is around 217 based on classic pivot levels, while resistance is found near 237. If the price breaks below 217, it could accelerate towards 208. However, breaking above 237 could signal a potential reversal towards the next key level around 244.

The presence of the Average True Range (ATR) around 12.85 indicates moderate volatility, so traders should be cautious about sharp price movements. The stock's ROE of 30.5% and ROCE of 35.7% reflect a strong long-term growth potential, making this a good candidate for long-term investors, but traders should watch out for short-term price corrections.