Wheels India Limited (WHEELS) Stock - Complete Technical Analysis - Dec 09, 2024

Wheels India Technical Analysis Support, Resistance & Market Trends Explained

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. Wheels India Limited (WHEELS) - Detailed Technical Breakdown:

Current Price: 758.00

52-week High: 914.95 (July 8, 2024)

52-week Low: 548.0 (May 13, 2024)

Recent Price Action: The stock is currently trading at 758.00, a strong level near its pivot point. It has been trading 17.15% below its 52-week high, showing moderate correction from the peak. However, it is still 38.32% above the 52-week low, indicating a potential bullish long-term trend.

Support and Resistance Levels:

Immediate Support: Around 705.88 (Classic Pivot Point), and 681.77 (Classic Pivot S1)

Resistance Levels: 745.77 (Classic Pivot R1), 769.88 (Classic Pivot R2)

Key Indicators:

RSI (Relative Strength Index): At 62.9, the RSI is suggesting a neutral condition, not overbought or oversold, indicating that the stock might be poised for a breakout or consolidation.

MACD (Moving Average Convergence Divergence): The MACD is showing bullish behavior, indicating an upward momentum, but watch for possible crossovers indicating a reversal.

ADX (Average Directional Index): At 18.73, the ADX is low, indicating weak trend strength. Traders should be cautious of market indecision.

Stochastic Oscillator: The Stochastic is above 80, signaling the stock might be overbought, suggesting a potential pullback soon.

Chart Patterns:

Doji (Dec 09, 2024): The Doji indicates indecision in the market, which may lead to a period of consolidation.

Bullish Engulfing (Dec 06, 2024): This pattern suggests a potential for upward movement as the price closed higher, engulfing the previous bearish candle.

Spinning Top (Dec 09, 2024): Indicates indecision in the market with an equal close and open, potentially indicating a short-term reversal.

Pivot Analysis:

Classic Pivots: The current pivot is at 705.88, with resistance at 745.77 (R1) and 769.88 (R2).

Fibonacci Pivots: Fibonacci levels suggest that 745.44 (R1) and 769.88 (R2) are strong resistance points, while 681.44 (S1) is key support.

Volatility: The stock's ATR value shows a volatile price movement, with a recent surge and subsequent correction. Volatility may lead to price swings, so keeping a close eye on support and resistance levels is essential.

Volume: Volume is moderate, indicating a balanced level of interest in the stock. A significant increase in volume could indicate the continuation of the bullish trend or a breakout.

Conclusion: Wheels India Limited has shown strong upward movement, supported by bullish chart patterns like the Bullish Engulfing, but the Doji and Spinning Top signals suggest caution in the short term. A breakout above resistance levels (745.77 and 769.88) could indicate further gains, while a drop below the support levels (705.88 and 681.77) would signal a possible reversal. Traders should use indicators like MACD, RSI, and Stochastic for additional confirmation of price direction.