Bajaj Consumer Care is at a critical juncture following a prolonged downtrend from its January 2018 all-time high and a subsequent sideways consolidation period since March 2020. The stock recently demonstrated significant buying interest with an 8.59% surge on a high-volume spike.
Bullish Indicators 👍
Several technical signals support a positive outlook:
- Momentum: Short-term Exponential Moving Averages (EMAs) are in a positive crossover state, indicating strong upward momentum.
- Volume: Trading volume has been consistently above average for several months, suggesting sustained accumulation by buyers.
- Long-Term Trend: The weekly timeframe now shows a Simple Moving Average (SMA) Golden Crossover, reinforcing the potential for a long-term trend reversal.
Key Resistance Levels 🚧
Despite the bullish signals, the stock faces two significant hurdles:
1. A major horizontal resistance line that has been in place since January 2013.
2. A more recent descending resistance trendline formed since April 2021.
Future Outlook and Scenarios
- Bullish Case 📈: A decisive breakout above both the horizontal and angular resistance levels would be a strong confirmation of bullish momentum. This could propel the stock towards a potential price target of ₹324.
- Bearish Case 📉: If the stock fails to sustain its upward momentum and break these key resistance levels, it may retrace back towards the ₹221 support level.
Keep monitoring !!
Bullish Indicators 👍
Several technical signals support a positive outlook:
- Momentum: Short-term Exponential Moving Averages (EMAs) are in a positive crossover state, indicating strong upward momentum.
- Volume: Trading volume has been consistently above average for several months, suggesting sustained accumulation by buyers.
- Long-Term Trend: The weekly timeframe now shows a Simple Moving Average (SMA) Golden Crossover, reinforcing the potential for a long-term trend reversal.
Key Resistance Levels 🚧
Despite the bullish signals, the stock faces two significant hurdles:
1. A major horizontal resistance line that has been in place since January 2013.
2. A more recent descending resistance trendline formed since April 2021.
Future Outlook and Scenarios
- Bullish Case 📈: A decisive breakout above both the horizontal and angular resistance levels would be a strong confirmation of bullish momentum. This could propel the stock towards a potential price target of ₹324.
- Bearish Case 📉: If the stock fails to sustain its upward momentum and break these key resistance levels, it may retrace back towards the ₹221 support level.
Keep monitoring !!
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.