Southern Petrochemicals Industries Corporation Limited (SPIC) Stock - Complete Technical Analysis - Dec 09, 2024

SPIC Stock Technical Analysis: Key Support, Resistance & Market Trends Dec 2024

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. Now, lets take a closer look at the stock of Southern Petrochemicals Industries Corporation Limited (SPIC) for a more detailed analysis focusing on trends, support, resistance, and overall market behavior.

Price Action Overview:

Current Price: Trading at 77.1, SPIC stock is significantly lower than its 52-week high of 107.5 and higher than its 52-week low of 64.4. This shows the stock is currently in a consolidation phase, between these two levels.

Key Support and Resistance Levels:

Support Levels: The stock is currently finding support around 77.18, derived from the classic pivot. Further supports can be found at 76.3 and 75.06, especially from the Camarilla and Fibonacci pivot levels.

Resistance Levels: Immediate resistance can be seen at 80.02, with the next level at 84.14 and 90.73 from the classic pivot R1 and R2. These levels are crucial for determining whether the stock could continue to trend upwards or face further resistance.

Chart Patterns:

A Bearish Engulfing pattern and an Evening Star pattern are present on the chart, which signals potential reversals to the downside. This is a strong bearish sign indicating that the stock could face further selling pressure in the short term.

A Spinning Top candlestick pattern today suggests that the market is indecisive, and investors may be waiting for more clarity on the stock's direction.

Price Action Analysis:

The stock has experienced noticeable price fluctuations over the last few days, with significant drops seen on December 5th and 6th. These price moves show some potential weakness, as the stock failed to maintain upward momentum.

Volatility Analysis:

The stock has a relatively high ATR (Average True Range) value, ranging from 15.16 to 21.34, which indicates medium-to-high volatility. Investors should be cautious of sharp price moves that could cause sudden drops or surges.

Key Moving Averages:

The stock is trading below its short-term and long-term moving averages, with the 50-day, 100-day, and 200-day EMAs signaling a bearish trend. The stock has been unable to regain momentum above these critical levels, reinforcing the bearish outlook.

Momentum Indicators:

RSI at 50.08 signals a neutral position, but the MACD is negative, indicating bearish momentum.

ADX is at 13.69, showing weak directional movement, which indicates that the stock could trade sideways for a while.

Stochastic RSI at 92.25 suggests that the stock is overbought, which may signal a reversal or pullback soon.

Conclusion: The overall analysis suggests that SPIC stock is facing bearish pressure in the near term. The key resistance levels at 80.02 and 84.14 will be crucial for price action. A failure to break through these levels could lead to further downside risk. Investors and traders should look for signs of consolidation or reversals at the support zones before making any moves. Caution is advised given the potential for further volatility.