Coffee Day Enterprises Limited (COFFEEDAY) Stock - Complete Technical Analysis - Dec 10, 2024

Coffee Day Enterprises Technical Analysis: Key Levels to Watch COFFEEDAY Stock Insights

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.

Coffee Day Enterprises Limited (COFFEEDAY) - Detailed Technical Analysis

At the current price of 26.4, COFFEEDAY is trading significantly below its 52-week high of 74.65, pointing to a downward trend over the last year. With the stock already at a substantial discount, investors are closely watching the price for potential reversal signs. However, technical indicators suggest that the stock is facing strong bearish pressure.

The Relative Strength Index (RSI) is in the oversold territory, which could indicate that the stock may be due for a short-term bounce. However, caution is warranted as the MACD shows a negative crossover, signaling a bearish momentum in the market. The commodity channel index (CCI) and Williams Percent Range are also deeply negative, further reflecting the weak sentiment around the stock.

Key technical levels to watch are support at 24.77, which has been tested in the past, and further downside support at 18.02. Resistance is found at 33.77, which aligns with the recent highs. Until COFFEEDAY crosses above the resistance zone, any short-term rallies are likely to face strong selling pressure.

The Average Directional Index (ADX) above 30 confirms that the current trend is strong, but it is bearish in nature, which means that unless there is a shift in market sentiment or a positive catalyst, the downward movement may continue. The stock has shown significant volatility with the Average True Range (ATR) trending higher in recent weeks, indicating that further sharp price fluctuations may occur.

As for the Ichimoku analysis, the price is well below the baseline, reinforcing the bearish outlook. The Moving Averages, both simple and exponential, also suggest that the stock is in a clear downtrend, further confirming that the path of least resistance remains to the downside. Traders should look for a potential reversal if the stock price starts showing signs of a strong upward momentum, particularly if it breaks through the 33.77 resistance level. Until then, caution and tight risk management are advised.

Conclusion:

Watch for potential reversals near the 24.77 support level.

Resistance at 33.77; any price action below this level should be considered bearish.

Significant volatility, so prepare for unexpected price moves.

Bearish sentiment remains in place until clear bullish signals emerge.