Shaily Engineering Plastics Limited (SHAILY) Stock - Complete Technical Analysis - Dec 06, 2024

Shaily Engineering Plastics Stock Analysis: Key Support & Resistance Levels for Dec 2024 SHAILY T

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. Shaily Engineering Plastics Limited (SHAILY) is currently priced at 1306.90, about 6.65% below its 52-week high and significantly above its 52-week low, indicating strong bullish momentum. However, the stock faces resistance at 1400, where it has recently peaked. This indicates a potential price ceiling in the short term.

The Average Directional Index (ADX) shows a strong trend, suggesting continued upward movement, while the Relative Strength Index (RSI) and Stochastic Oscillator signal that the stock is approaching overbought levels. This could lead to a short-term pullback or consolidation before further gains.

Key support levels are near the 1250 and 1200 marks, where the stock has previously found buying interest. These areas are crucial for maintaining the current bullish trend. Should the stock dip below 1200, traders may want to look for a more significant correction or reversal.

From a chart perspective, the formation of a Doji and a Spinning Top candlestick pattern indicates market indecision, pointing to a potential breakout or breakdown. If the price manages to hold above 1300, we could see another attempt to test the 1400 resistance. However, falling below 1200 could signal a shift in market sentiment and possibly mark the end of the current rally.

In terms of volatility, the Average True Range (ATR) is elevated, signaling the potential for large price swings. Momentum remains strong, but traders should be cautious, as rapid movements could lead to sharp corrections.

Actionable Insight: Consider waiting for price action confirmation around the support zones. A move above 1350 could signal a continuation, but a drop below 1200 could signal a more substantial pullback. The upcoming price action at these key levels will provide more clarity on the future direction.