Ahluwalia Contracts (India) Limited (AHLUCONT) Stock - Complete Technical Analysis - Dec 18, 2024

Ahluwalia Contracts (AHLUCONT) Technical Analysis Support, Resistance & Key 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.

Ahluwalia Contracts (India) Limited (AHLUCONT) has been trading at 1,095, reflecting a significant pullback from its 52-week high of 1,542.45, while maintaining a recovery stance above its 52-week low of 747.80. Recent price trends show consistent pressure around 1,135, with lower highs forming, suggesting weak buying momentum. Over the past week, the stock's intraday lows have hovered around 1,080, signaling critical support at this level. However, a downward closing streak suggests a cautious sentiment among traders.

The technical indicators provide a mixed outlook. RSI at 56.18 indicates a neutral market, while Stochastic RSI Fast at 68.92 and Momentum at 26.0 reveal mild upward potential, provided buying volume increases. The ADX reading of 28.66 confirms that the prevailing trend strength is moderate, with no definitive breakout. MACD remains in positive territory, signaling an upward bias, but it needs confirmation from price movement above 1,150. On the other hand, Awesome Oscillator at 81.27 and CCI at 66.38 suggest a slight decline in momentum.

Moving averages depict a congestion zone. While the stock is hovering near the 10 and 20-day EMAs at 1,093.66 and 1,071.74, the 200-day EMA and SMA resistances at 1,097.17 and 1,171.35, respectively, indicate a strong ceiling for the stock. Additionally, pivot analysis reveals Classic R1 at 1,085 and R2 at 1,169, identifying critical hurdles for upward movement. On the downside, the Ichimoku Base Line at 1,044 serves as key support, with VWMA at 1,065 further strengthening this range.

The stock's ATR readings signal moderate volatility, with prices likely to remain in a tight band unless a decisive breakout occurs. Recent price gaps and lower highs suggest a mild bearish reversal, with upside potential only above 1,150. Conversely, a breakdown below 1,065 could trigger further downside pressure, testing supports near 1,044 and below. Traders are advised to monitor these levels closely and wait for confirmation signals from price and volume before initiating new positions.