Resistance Breakout & Becomes Support. Retesting Support

13 thg 10, 2024

Based on the Godrej Agrovet (W) chart:

Technical Analysis:
Price Levels: The stock is currently trading around ₹746, after hitting a high around ₹860. There seems to be resistance near ₹770, where a recent pullback occurred.
Support Zone: The highlighted purple box indicates a key support zone, roughly between ₹680 and ₹720, where prices have historically reacted. This zone has been tested multiple times in the past, both as support and resistance.
Downtrend: The stock appears to be in a short-term corrective phase after a strong upward rally. The price seems to be consolidating above the previous resistance zone (now turned support) around ₹700-720.
EMA Crossovers: The stock may be experiencing a potential reversal if a crossover pattern develops or if it bounces off the key support zones.
Outlook:
If the price holds above ₹720 and moves upward, it might suggest the end of the correction phase, possibly leading to a retest of the ₹770-800 range. However, if the price falls below ₹700, it could indicate further downside, with the next support potentially near ₹650-680.