Bharat Wire Ropes Limited (BHARATWIRE) Stock - Complete Technical Analysis - Dec 09, 2024

Bharat Wire Ropes Stock Analysis Key Support & Resistance Levels Technical Insights for Traders

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. Bharat Wire Ropes Limited (BHARATWIRE), currently priced at 238, shows a combination of bullish and bearish signals. The stock is trading 40.59% below its 52-week high of 400.6, but it's also 13.33% above the 52-week low of 210, indicating a potential for recovery. The current P/E ratio of 19.2 points to a fairly priced stock, while a book value of 102 and strong ROE of 42.3% highlight its solid financials.

Looking at technical indicators, the Average Directional Index (ADX) stands at 25.59, showing moderate trend strength, while the RSI at 55 suggests the stock is in neutral territory. However, the Stochastic RSI is highly overbought at 97.73, signaling a possible pullback. The MACD is in the negative, though it's nearing a possible reversal, signaling potential for a bullish move if the price crosses key resistance levels.

The stock's price is currently above its short-term moving averages, including the 10-period EMA (232.3), indicating support at this level. The longer-term EMA levels, particularly the 200-period EMA (258.08), suggest resistance overhead. The stock's range-bound behavior is also confirmed by the recent patterns, such as the Doji and Spinning Top, which indicate indecision in the market. A breakout above the 240 level could signal a continuation of upward momentum, while a drop towards 214 would suggest further downside potential.

Given these factors, traders should be cautious and wait for a clear breakout in either direction to gain a better understanding of the stock's next move. With volatility in play, indicated by an ATR of 21.47, this is a stock to watch closely for potential opportunities once the price breaks past key levels.