Affle (India) Limited (AFFLE) Stock - Complete Technical Analysis - Sep 06, 2024

Affle India Stock Analysis: Key Support and Resistance Is a Reversal Coming

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.

Affle (India) Limited is currently trading at 1,621, showing some resistance near its 52-week high of 1,715. The stock has seen a strong upward movement, trading 64.06% above its 52-week low of 988.15, but a recent Shooting Star pattern suggests a potential bearish reversal, indicating caution for short-term traders. The MACD is positive, reflecting bullish momentum, but the RSI at 57.52 indicates the stock is approaching neutral territory, neither oversold nor overbought.

The ADX at 40.17 shows that the stock has a strong trend, though with some consolidation visible as momentum slows, as reflected by the negative Momentum indicator. The stock is hovering around key moving averages, with short-term EMAs around 1,622 and 1,597 providing some support. A break below these levels could signal a potential drop toward the 1,500 level, but support near the 1,460 range is expected to hold, as indicated by the classic pivot levels.

The Awesome Oscillator is positive, hinting at bullish strength, though the Williams Percent Range suggests the stock is moderately overbought. Traders should watch the stochastic indicators, with the %K at 44.15, indicating a possible shift in momentum. The stock has historically bounced back from key moving average levels, particularly around the 200-day EMA of 1,281, a significant long-term support zone. If the bearish reversal pattern plays out, a pullback to lower support levels could offer a good buying opportunity for long-term investors.

In summary, while the overall trend remains strong, a cautious approach is advisable in the near term due to potential bearish signals. Traders should keep an eye on key support levels around 1,500 and 1,460, with resistance near 1,715. Watch for a break in either direction to confirm the next move.