Following a recent retracement from a previously identified discount zone, the stock of Bharat Heavy Electricals Limited (BHEL) is exhibiting signs of potential bullish momentum. This outlook is supported by several technical indicators observed on the daily chart:
Fibonacci Retracement:
The stock has retraced to the 61.8% Fibonacci level from its recent swing high, a zone often regarded by technical analysts as a potential area of price support and reversal.
Exponential Moving Averages (EMAs):
Price action has moved above the 20-day, 50-day, 100-day, and 200-day EMAs, which may suggest strengthening bullish sentiment and a shift in medium- to long-term trend dynamics.
Golden Crossover Setup:
The shorter-term moving averages appear to be converging toward a golden crossover (typically when the 50-day EMA crosses above the 200-day EMA), a pattern that historically has been associated with bullish continuation, though confirmation is still pending.
Relative Strength Index (RSI):
The RSI has crossed above the 60 level, indicating increasing buying momentum. While not yet in overbought territory, this move may reflect growing investor interest.
Immediate Supply Zone:
Based on historical price action and volume profile, the stock may encounter resistance near the ₹250 level, with a stronger resistance band around ₹265.
Support Zone:
Should the price face selling pressure, a potential support area lies near the 38.2% Fibonacci retracement level, approximately around ₹219.
Disclaimer: This analysis is intended for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Market conditions can change rapidly, and traders should conduct their own due diligence or consult with a registered financial advisor before making any investment decisions.
Fibonacci Retracement:
The stock has retraced to the 61.8% Fibonacci level from its recent swing high, a zone often regarded by technical analysts as a potential area of price support and reversal.
Exponential Moving Averages (EMAs):
Price action has moved above the 20-day, 50-day, 100-day, and 200-day EMAs, which may suggest strengthening bullish sentiment and a shift in medium- to long-term trend dynamics.
Golden Crossover Setup:
The shorter-term moving averages appear to be converging toward a golden crossover (typically when the 50-day EMA crosses above the 200-day EMA), a pattern that historically has been associated with bullish continuation, though confirmation is still pending.
Relative Strength Index (RSI):
The RSI has crossed above the 60 level, indicating increasing buying momentum. While not yet in overbought territory, this move may reflect growing investor interest.
Immediate Supply Zone:
Based on historical price action and volume profile, the stock may encounter resistance near the ₹250 level, with a stronger resistance band around ₹265.
Support Zone:
Should the price face selling pressure, a potential support area lies near the 38.2% Fibonacci retracement level, approximately around ₹219.
Disclaimer: This analysis is intended for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Market conditions can change rapidly, and traders should conduct their own due diligence or consult with a registered financial advisor before making any investment decisions.
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
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.