SHREE CEMENT LIMITED (SHREECEM) Stock - Complete Technical Analysis - Nov 18, 2024

Shree Cement Limited Stock Analysis: Bearish or Bullish Reversal Key Levels to Watch

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. Shree Cement Limited (SHREECEM) - A Detailed Technical Breakdown

Current Market Price:

Shree Cement Limited (SHREECEM) is trading at 23,935.05, showing a 22.13% decline from its 52-week high of 30,737.75 and a 1.85% rise from its 52-week low of 23,500, reached on November 12, 2024. This places the stock in a range bound zone, with potential for a technical rebound or continuation of the bearish trend.

Technical Indicators Analysis:

RSI: The RSI value of 34.51 indicates the stock is nearing oversold conditions, suggesting a potential for upward correction in the near future.

MACD: With a negative MACD, the stock exhibits a bearish short-term trend. However, the MACD line is far from the zero line, suggesting the downtrend could be weakening.

ADX: The ADX is at 21.11, signaling a weak trend. This suggests that the market is in a range-bound phase, with no strong direction.

Stochastic: The Stochastic indicator is at 25.56, entering oversold territory, which can signal a potential reversal to the upside if momentum shifts.

ATR: The ATR remains elevated, showing that volatility is still present, with the stock likely to experience price swings in either direction.

Price Action and Candlestick Patterns:

Today's candle (Spinning Top) reflects indecision in the market. Traders should remain cautious and look for confirmation of either a reversal or continuation at the current support levels.

Support and Resistance Levels:

Immediate Support: 23,500 is the immediate support level, which has been tested recently.

Immediate Resistance: The next resistance levels are 24,500 (near current highs) and 25,000, which could serve as psychological resistance.

Pivot Points: Classic Pivot stands at 25,256.97, signaling a neutral to slightly bullish outlook if the price breaks above this level.

Moving Averages and Trend Analysis:

Exponential Moving Averages (EMA): The stock is trading below its key EMAs, indicating bearish sentiment in the short term. However, a strong rally from support could lead to the stock reclaiming key levels such as the 50-day and 100-day EMAs.

Simple Moving Averages (SMA): The stock is under pressure, as it trades below the 50-day and 100-day SMAs, reinforcing the bearish momentum.

Conclusion:

Shree Cement is facing a period of consolidation and indecision, with the potential for either a reversal or further downside based on how it behaves around key support and resistance levels. Watch for signs of strength near 23,500, which may indicate a possible upward move if it holds. A decisive break above 24,500 would be bullish, while a breakdown below 23,500 could signal further declines.