Relaxo Footwears Limited (RELAXO) Stock - Complete Technical Analysis - Dec 16, 2024

Relaxo Footwears Limited (RELAXO) Stock Technical Analysis: Key Levels & Market Outlook

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. Relaxo Footwears Limited (RELAXO) is currently experiencing a 31.90% drop from its 52-week high, now trading at 646.25. The P/E ratio of 88.8 is relatively high compared to the company's ROE of 10.5% and ROCE of 13.9%, which suggests that the stock might be overpriced. The key support level for the stock is at 625, closely aligning with its 52-week low, and if the stock fails to hold above this level, it may face further downside pressure. On the upside, resistance is located around 660, near the 10-day EMA.

The technical indicators reflect mixed signals. The RSI is below 35, signaling oversold conditions and the possibility of a rebound. However, the ADX reading of 25.36 suggests the current trend lacks significant momentum. The MACD is in negative territory, suggesting bearish momentum. On a more positive note, the Stochastic RSI offers a slight chance of a short-term recovery. The ATR shows that price fluctuations have been relatively calm, reducing the likelihood of large price swings in the immediate future.

Overall, Relaxo Footwears Limited is in a consolidation phase. The stock's price action is likely to remain range-bound unless it breaks either the support at 625 or the resistance at 660. Traders should look for confirmation of either a downside continuation or a potential reversal above 660 before taking action.