Shanthi Gears Limited (SHANTIGEAR) Stock - Complete Technical Analysis - Nov 22, 2024

Shanthi Gears Stock Analysis: Bearish Patterns & Key Levels to Watch Technical Breakdown

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.

Shanthi Gears Limited (SHANTIGEAR) is currently trading at 499.45, about 29% off its 52-week high, signaling a correction phase. Recently, the stock formed bearish chart patterns including a Bearish Engulfing and an Evening Star, both indicating potential further downside in the short-term. The RSI is at 29.47, signaling the stock may be oversold and could experience a reversal if buying pressure intensifies.

In terms of moving averages, the stock is trading well below key levels, with the 10-period EMA at 519.55 and 50-period EMA at 567.36, which suggests a continuation of the downtrend. MACD and ADX confirm the negative momentum and moderate trend strength.

Key support levels are near 490, while resistance lies at 510-520. A breach of support could lead to further declines towards 468-470, while a breakout above resistance could signal a short-term rally.

Volatility, as indicated by the ATR, is moderate to high, so traders should be prepared for price swings. With bearish patterns and weak momentum, the stock is positioned for potential declines, but an oversold condition also opens the door for a possible short-term bounce.