M&M Fin (W) - Renewed Strength within a Multi-Year ConsolidationAfter more than two years of trading in a sideways range, M&M Financial Services is showing strong signs of renewed buyer interest, suggesting a potential move towards the top of its long-term consolidation channel.
The Big Picture: A Prolonged Consolidation
Since reaching its All-Time High (ATH) in July 2023, the stock has been locked in a wide consolidation or sideways trend. A classic and often bullish sign during this phase has been the gradual drying up of trading volume , which typically indicates that selling pressure is diminishing.
Recent Bullish Action
The past week marked a significant shift in activity, signaling that bulls are becoming active again:
- The stock surged by +6.38% for the week.
- This move was supported by a strong volume of 15.49 million shares , indicating conviction behind the buying.
This renewed interest is supported by the underlying strength seen in higher timeframe indicators. Both the short-term Exponential Moving Averages (EMAs) and the Relative Strength Index (RSI) are in a bullish state on the *Monthly and Weekly charts.
Outlook and Key Levels
While the ultimate goal for bulls is a breakout above the distant ATH, the immediate battleground is the established trading range.
- Upside Target: The primary target in the near term is the upper limit of the consolidation range, around the ₹333 level. A breakout above this would be the next major bullish signal.
- Key Support: If this recent momentum fades, the stock is likely to find strong support at the lower boundary of its range, near the ₹250 level.
In conclusion, last week's strong performance suggests M&M Financial is preparing to challenge the top of its long-term range. The key now is to watch if this momentum can be sustained for a move towards the ₹333 resistance.
