Schaeffler India Limited (SCHAEFFLER) Stock - Complete Technical Analysis - Oct 15, 2024

Schaeffler India Limited Technical Analysis: Key Levels & Insights 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. Schaeffler India Limited, trading at 4006, exhibits a complex technical landscape. Currently, the stock is significantly below its 52-week high of 4951, reflecting a drop of approximately 19.09%. This decline indicates potential resistance around the previous high, suggesting that buyers may face challenges in pushing the price above this level. Conversely, the stock shows resilience, trading 53.34% above its 52-week low of 2612, which sets a solid support foundation for potential upward movements.

Support and Resistance Levels: The immediate support is likely near the 3905 level, reinforced by various pivot calculations. Below this, we observe significant support at 3761 and 3609, which could act as further safety nets for the stock. Resistance appears to be at the recent highs around 4057 and 4201, indicating levels where selling pressure might increase.

Technical Indicators:

The MACD shows a bullish divergence, suggesting potential upward momentum in the near term.

The RSI, sitting at 57, indicates the stock is approaching overbought conditions, but not yet signaling a reversal.

The ADX, at 12.52, reflects a weak trend, implying that the market may be consolidating before a decisive movement.

Price Trends and Patterns: In the last five trading days, the stock has seen fluctuations, with a notable drop on October 10th, reaching a low of 3827.80. This could indicate a momentary sell-off, but the recovery back to 4005.65 suggests buyer interest at lower levels. The most recent trading day witnessed a brief surge to a high of 4083.05, followed by a close just above the 4000 mark, reinforcing the level as a psychological barrier.

Volatility and Reversals: Volatility is evident with the Average True Range showing considerable fluctuation in price, highlighting the potential for sudden moves. The strong bullish power indicated by the Awesome Oscillator suggests that, despite some short-term dips, the long-term trend may remain positive. Additionally, a substantial bullish gap appeared between the open and close on October 14th, which can often signify the continuation of an upward trend.

Overall, traders should remain vigilant around the 4000 to 4057 resistance zone while watching for potential bullish signals on the MACD and RSI. With a solid support base and a bullish trend emerging, Schaeffler India Limited could present opportunities for savvy traders.