Ambika Cotton Mills Limited (AMBIKCO) Stock - Complete Technical Analysis - Dec 11, 2024

Ambika Cotton Mills (AMBIKCO) Stock Technical Analysis Key Support, Resistance, and Price Trends

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. Ambika Cotton Mills Limited (AMBIKCO) Stock Technical Analysis for Traders

Ambika Cotton Mills Limited is currently trading at 1,732.70, and it has been fluctuating within a significant 52-week range, with a high of 2,197.65 and a low of 1,385.65. Currently, it's 21.16% below its 52-week high, which means there is potential for an upward move if the market conditions support it. The stock has recently demonstrated a strong upward trend, especially with the rise from 1,555 to 1,749.55 during early December.

Support Levels Looking at potential support, 1,500 is a critical level, with further support around 1,400. These are the levels to watch if the price faces any downward pressure.

Resistance Levels On the resistance side, the stock faces key levels around 1,750 and 1,800. The price of 1,732.70 is approaching this resistance area, so it is essential to monitor these levels closely for potential breakout or rejection.

Technical Indicators

The RSI is at 75.7, indicating overbought conditions, suggesting that the stock might be due for a pullback.

The MACD remains in a bullish setup, supporting the continuation of the current trend.

The ADX of 29.99 indicates a strong trend, further confirmed by the Awesome Oscillator and Commodity Channel Index, which are both signaling strong bullish momentum.

The Stochastic RSI at 100 suggests that the stock is overbought and could be primed for a short-term correction.

Volatility & Price Action The stock has seen sharp surges in price recently, with significant volatility observed, particularly on December 9, when the price surged from 1,585 to 1,749.55. The ATR value is on the higher side, signaling that traders should expect some price swings. This means the stock may continue to show volatility, especially near key levels.

In summary, Ambika Cotton Mills is currently in a bullish phase, but caution is advised due to the overbought conditions indicated by the RSI and Stochastic RSI. Key support at 1,500 and resistance at 1,750 are important levels to monitor. Traders should be alert for a breakout or a potential reversal at these levels.