Gujarat Gas Limited (GUJGASLTD) Stock - Complete Technical Analysis - Oct 15, 2024

Gujarat Gas Limited Technical Analysis: Support, Resistance & Trading Insights

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. Gujarat Gas Limited (GUJGASLTD) is currently trading at 585.90, which is 15.08% below its 52-week high of 689.95 reached on September 2, 2024. In contrast, the stock is 47.56% above its 52-week low of 397.05 established on October 26, 2023. Recent price action shows a bearish trend with the stock declining from 602.90 to 585.90 over the past week, indicating potential selling pressure.

Analyzing the support and resistance levels, the immediate support is observed around 580, with the next key support at approximately 542. Conversely, resistance is expected around the 600 to 607 range, with further resistance at 635, which aligns with key pivot points.

Looking at the technical indicators, the RSI is at 36.1, suggesting that the stock is nearing oversold territory, indicating a potential rebound. However, the ADX at 18.79 reflects weak trend strength, implying the stock may remain range-bound in the near term. The MACD, which is currently negative, signals a bearish momentum, while the Stochastic RSI at 13.63 supports a potential price reversal.

The last five trading sessions highlight volatility, especially with significant price drops, as seen on October 14, where the stock fell from an opening price of 602.55 to a low of 585.05. This drop can be attributed to increased selling activity, as indicated by the Awesome Oscillator and the negative Bull Bear Power. The Average True Range (ATR) suggests heightened volatility, emphasizing the need for caution.

In summary, GUJGASLTD appears to be in a correction phase, with significant support at 580 and potential resistance at 600. Traders should watch for price action around these levels and consider using indicators like RSI and Stochastic for timing entry points. Given the current bearish sentiment, a rebound may occur if the stock successfully holds above the support level, providing a potential opportunity for short-term trades.