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

HEG Limited Technical Analysis: Key Support & Resistance Levels Unveiled

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. Welcome to our technical analysis of HEG Limited stock, currently priced at 496.35. As we examine the recent price action, we notice that the stock is trading 9.52% below its 52-week high of 548.6, reached on May 22, 2024, and 69.76% above its 52-week low of 292.38 from October 26, 2023. This shows a significant recovery in price over the last year.

Analyzing the last five trading days, we see a pattern of fluctuating prices with notable volatility. For instance, on October 18, the stock opened at 509, reached a high of 516, but closed lower at 496.35, indicating a potential reversal from its peak. The previous day, October 17, also showed a significant drop from an opening of 2,483.50 to a close of 2,570.40, indicating a bearish trend.

Regarding support and resistance levels, we identify key levels to watch. Support is seen at the 488-490 range, as it held during the recent price dips. Resistance is noted around the 516-520 range, which the stock has struggled to surpass recently. If the stock breaks above 520, we may see further upside potential, while a drop below 490 could signal a deeper correction.

In terms of indicators, the Average Directional Index (ADX) at over 38 suggests a strong trend is in place. The Relative Strength Index (RSI) hovering near 59 indicates the stock is nearing overbought territory, which could suggest a consolidation phase is ahead. The Stochastic %K is also above 75, pointing towards a potential price correction.

Moving averages show that the stock is trading above key exponential and simple moving averages, further reinforcing the bullish sentiment, but traders should remain cautious of sudden price reversals as the market digests recent volatility.

Overall, HEG Limited presents an interesting opportunity, but traders should keep an eye on the support and resistance levels for actionable insights.