MAHINDRA & MAHINDRA - BEARISH PRICE ACTION AT RESISTANCE ZONESymbol - M&M
CMP - 3218
Mahindra & Mahindra Ltd. has been witnessing a recovery in recent weeks after facing a significant decline. The stock has shown strength by bouncing back from key support zones and is now encountering key resistance levels. However, it faces challenges at higher levels, and we are starting to see signs of consolidation & bearish price action as it tests these resistance zones.
The overall trend appears to be on a recovery path, following a steep drop. But at these higher levels, the stock faces resistance, suggesting a possible pause or consolidation before any significant movement in either direction.
In the short term, the trend is slightly bearish. The stock has encountered some selling pressure & is forming bearish candlesticks as it nears its resistance levels, and it's currently consolidating. In the long term, the trend remains positive, backed by the company’s strong fundamentals, especially in the automotive and farm equipment sectors.
Currently, the stock is trading within a range with visible selling pressure near a resistance zone, indicating a consolidation phase. My bias leans towards the downside in the short term, and we could see a pullback from the resistance level towards the support trendline, with the possibility of further declines.
For traders, the strategy could involve looking for short opportunities near the resistance zone, particularly if the stock fails to break out above this level and begins reversing. However, if the stock manages to break through the resistance and shows sustained momentum, the bias could shift to the upside, and long positions might be considered.
Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis. You can track it for educational purposes. Thanks!
