Igarashi Motors India Limited (IGARASHI) Stock - Complete Technical Analysis - Dec 09, 2024

Igarashi Motors India (IGARASHI) Stock Technical Analysis - Support, Resistance, and Key Indicator

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. The stock of Igarashi Motors India Limited (IGARASHI) is currently trading at 796.40, a level 6.19% below its recent 52-week high of 848.95. The last five trading days have shown significant price volatility, with both upward and downward movements signaling indecision in the market. Patterns such as the Doji and Spinning Top reflect this indecision. The Relative Strength Index (RSI) at 58.22 suggests that the stock is neither overbought nor oversold, indicating a neutral stance in terms of momentum.

On the technical front, the Average Directional Index (ADX) is relatively low at 16.52, indicating weak trend strength. However, the MACD level remains positive, which suggests bullish momentum in the stock for now. Support can be observed at 795, where the 10-day Exponential Moving Average (EMA) lies, and further at the 773-775 range, which aligns with longer-term moving averages like the 50-day and 100-day EMAs.

Resistance is expected to be around the 832-837 zone, which coincides with recent highs and is near the stock's 52-week high. A breakout above 837 could set the stage for a rally toward the next major resistance at 896. On the downside, any drop below 795 could trigger further downside testing, with potential support near 689-690. Additionally, the stock is showing bullish signals from the Stochastic Oscillator and the Commodity Channel Index (CCI), which suggest potential upward momentum in the short term. However, with a high P/E ratio of 111 and a low ROE and ROCE, long-term investors should remain cautious.