Viaz Tyres Ltd: On the Verge of a Major Breakout or Reversal

Nov 30, 2024

Key Highlights:

• Resistance Zone (₹70-₹72):
  The chart shows a well-defined resistance zone marked in red. This level has been tested multiple times without a breakout, making it a critical hurdle for the stock.
  
  
• Ascending Trendline Support:
  The blue trendline indicates a steady upward movement, with the stock consistently making higher lows. This trendline is currently acting as a strong support level, near ₹63.
  
  
• Critical Support Level (₹53.90):
  A red horizontal line at ₹53.90 highlights a strong support zone. If the price breaks below the ascending trendline, this level could act as the next major support.
  
  
  
• Volume Analysis:
  The stock is witnessing moderate volume near the consolidation phase, indicating indecision. A spike in volume could confirm a breakout or breakdown.
  

Potential Scenarios:

Bullish Outlook:

• A breakout above ₹72 with strong volume could lead to a rally towards ₹85 or higher.
  
• The ascending trendline suggests a positive bias as long as the price respects this support.
  

Bearish Outlook:

• A breakdown below the trendline (₹63) may push the stock towards ₹53.90, the next support zone.
  
• Failure to hold ₹53.90 could trigger further downside.
  

Takeaway:
The stock is currently consolidating between ₹65-₹72, forming a critical juncture for traders and investors. A breakout above resistance or breakdown below support levels will determine the next trend. Keep a close watch on volume for confirmation of the next move.