CEAT Limited (CEATLTD) Stock - Complete Technical Analysis - Oct 18, 2024

CEAT Limited Technical Analysis: Bullish Patterns & Price 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.

Technical Analysis of CEAT Limited (CEATLTD)

Current Price: 2,972.85, indicating a significant position in the market as it stands 8.89% below its 52-week high of 3,263.00, reached on September 27, 2024, and is 44.31% above the 52-week low of 2,060.00, established on October 23, 2023.

Support and Resistance Levels

Key support levels are observed at 2,853.57 (Classic Pivot S1) and 2,745.61 (Fibonacci Pivot S2). Resistance levels are identified at 3,058.28 (Classic Pivot P) and 3,059.00 (Camarilla R1). A close below the support could indicate a bearish trend, while a breakout above resistance may signify bullish momentum.

Price Trends

The stock has shown a recent surge, opening at 2,799.00 today and hitting a high of 3,019.95, which reflects strong bullish activity after a bearish day previously. The previous five trading sessions exhibited fluctuations, indicating potential volatility and active trading.

Gaps in Price

The transition from yesterday's close of 2,891.75 to todays open of 2,799.00 creates a notable gap. This may represent a sudden drop, prompting traders to observe the volume accompanying this gap for potential further movement.

Volatility and Reversals

With the Average True Range (ATR) around 197.89, the stock demonstrates significant volatility. The formation of a Bullish Engulfing and Morning Star patterns suggests potential bullish reversals, especially considering the price action surrounding the lows and subsequent higher closes.

Key Indicators

MACD indicates bullish momentum with the line above the signal line.

RSI is neutral at approximately 50, showing no strong overbought or oversold conditions.

ADX remains low, suggesting a potential consolidation phase may be at play.

In conclusion, CEAT Limited is experiencing a bullish phase, supported by recent technical patterns and a strong price rebound. However, traders should remain cautious and monitor key support and resistance levels for potential entry or exit points.