Shriram Finance Ltd- Swing1. Trend analysis
- the stock was in a downtrend from October to late January, forming lower highs and lower lows.
- however, in February, the stock started recovering and has now moved above the 200-day moving average (blue line), which is a bullish sign.
2. Moving averages
- The chart shows two short-term moving averages (red and green lines), which could be the 9-day and 21-day ema.
- The stock is currently trading above these moving averages, suggesting short-term momentum is in favor of buyers.
3. Volume analysis
- There is a significant increase in volume on the latest green candle, indicating strong buying interest.
- Higher volume during an upward move confirms that the breakout could be sustainable.
4. Support and Resistance levels
- Support: the 580-590 zone is an important support level as the price has broken out from this area.
- Resistance: the next potential resistance is around 630-650, where selling pressure might come in.
5. Swing trade plan
- Entry: if the stock holds above 580-590, consider entering.
- Stop loss: place a stop-loss below 565, as a break below this level could signal weakness.
- Target: the first target can be 630, and if momentum continues, it can move towards 650.
This setup looks good for a bullish swing trade, as the stock has broken key resistance with strong volume. however, it is always wise to watch the overall market conditions before entering the trade.
