COAL INDIA - Levels1. Trend Analysis
The stock (Coal India Ltd) had a strong uptrend from mid-2023 to early 2024. However, since reaching a peak around 544 INR, it has been in a clear downtrend, making lower highs and lower lows.
Currently, the stock is consolidating around the Fibonacci 0.618 level (348.50 INR), which is a crucial support level.
2. Fibonacci Retracement Levels
The stock has retraced from its peak and is now hovering near the 0.618 Fibonacci retracement level (348.50 INR). If this level holds, there could be a possible bounce. If the price breaks below 348 INR, the next key support is at 0.786 Fibonacci level (295.35 INR).
3. Exponential Moving Averages (EMA)
The stock is trading below both short-term and long-term EMAs, indicating bearish momentum. The short-term EMA (red line) is sloping downward, reinforcing the ongoing selling pressure. The longer-term EMA (blue line) is far below the price, acting as major support in the 300-320 INR zone.
4. Volume Analysis
The volume bars indicate declining interest, with some spikes during down moves, suggesting distribution. If a reversal is to happen, it needs strong buying volume confirmation.
Conclusion
Bearish Bias: The stock is in a downtrend and trading below key EMAs.
Support Levels: Watch 348 INR (0.618 Fibonacci) and 295 INR (0.786 Fibonacci).
Resistance Levels: If the stock bounces, first resistance is at 385 INR (0.5 Fibonacci) and stronger resistance near 423 INR (0.382 Fibonacci).
Watch for Volume: A bullish reversal needs an increase in volume near support.
Entry and Exit Points for Coal India Ltd
Entry Points (Buying)
Near 348 INR (0.618 Fibonacci level)
If the price holds above 348 INR and shows bullish price action (strong green candle, bullish engulfing, or a hammer pattern).
Confirmation with increased volume is necessary.
Stop-loss: Below 340 INR to limit downside risk.
If the price drops to 295 INR (0.786 Fibonacci level)
This is a stronger support level where the stock could find buyers.
Watch for bullish reversal signals and volume confirmation.
Stop-loss: Below 285 INR if support fails.
Exit Points (Selling)
First Resistance: 385 INR (0.5 Fibonacci level)
Partial profit booking if the stock bounces from current levels.
Second Resistance: 423 INR (0.382 Fibonacci level)
Stronger resistance level, suitable for further profit-taking if momentum sustains.
469 INR (0.236 Fibonacci level) – Longer-term target
If the stock enters a full uptrend again, this could be a potential higher target.
Risk-Reward Setup
Buying near 348 INR with a target of 385 INR gives a risk-reward ratio of approximately 1:2. If entering around 295 INR, a move back to 348 INR provides a higher risk-reward setup.
