Relaxo Footwears Limited (RELAXO) Stock - Complete Technical Analysis - Nov 08, 2024

Relaxo Footwears Technical Analysis: Bearish Reversal or Opportunity Stock 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. Relaxo Footwears Limited (RELAXO) is currently trading at 770, with significant technical indicators suggesting a bearish outlook. The stock is 18.83% below its 52-week high and 5% above its 52-week low. Despite showing reasonable ROE and ROCE levels of 10.5% and 13.9%, respectively, its high P/E ratio of 106 suggests that it may be overvalued.

The Exponential Moving Averages indicate a bearish trend as the stock is trading below these key levels. The 50-period EMA at 789.63 and the 200-period EMA at 824.93 act as resistance zones, suggesting that the stock might face selling pressure in the short term.

Support levels lie around 764 and 770, with the stock's recent price action confirming these levels. The RSI of 46 indicates a neutral stance but is leaning towards weakness. The MACD in the negative zone and a Bearish Engulfing pattern suggest that downward momentum is building. Additionally, the Evening Star pattern has appeared, which is a sign of a potential reversal to the downside.

With volatility being quite high, as indicated by the ATR, traders should be cautious of sudden price fluctuations. Should the stock break below the support levels of 764-770, further downside could be expected, with 750 and below becoming the next support zones to watch. The presence of multiple bearish reversal signals makes RELAXO a stock to monitor closely for potential short-term downside moves.