Welspun Living Limited (WELSPUNLIV) Stock - Complete Technical Analysis - Dec 16, 2024

Welspun Living Technical Analysis: Key Resistance & Support Levels for Traders

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.

Welspun Living Limited (WELSPUNLIV) is currently trading at 175.62, still up significantly from its 52-week low, indicating a solid recovery. The stock has recently formed two bullish patternsthe Bullish Engulfing and the Morning Starwhich suggest further upside potential. The key resistance zone for the stock is near the 176 level, which is where it has been struggling. If the stock breaks above this level, it could potentially test higher levels around 180-185. On the downside, support is seen at 170 and 166, levels that have been tested in recent price movements.

The technical indicators support a bullish outlook, but caution is advised as the RSI is moving towards overbought levels, signaling that a pullback or consolidation could occur soon. The Stochastic %K is also in the overbought region, reinforcing the idea of a potential price correction. The MACD remains positive, showing bullish momentum, although the ADX at 29 suggests a weakening trend, meaning the stock might consolidate rather than show sustained upward movement.

Overall, the stock is in a strong uptrend but is approaching a critical resistance level. Traders should watch for a breakout above 180 to signal further upward movement, with targets toward 190-200. A failure to break resistance could lead to a pullback toward support levels at 170 and 166.