Sundram Fasteners Ltd Chart Analysis

3 gün önce

Detailed Chart Analysis for Sundram Fasteners Ltd. (4-Hour Timeframe):

The chart uses **Heikin Ashi candles**, which are designed to smooth price movements and highlight trends. Below is a breakdown of the key elements:

### 1. **Price Action and Heikin Ashi Candles**:
- **Trend Analysis**:
- The chart shows a clear **downtrend** followed by a consolidation phase and a potential reversal in the last few candles.
- The **Bottom 1 and Bottom 2** labels suggest a possible **double-bottom pattern**, a bullish reversal indicator.

- **Resistance and Support Levels**:
- The purple line at **₹1,399.90** represents a major **resistance level**.
- The green and red arrows highlight areas where the price struggled, indicating critical decision zones.

### 2. **Volume**:
- **Increasing Volume at Bottom 2**:
- A spike in volume at the second bottom indicates buying interest, supporting the reversal possibility.
- **Volume Divergence**:
- While the price declined, the volume remained relatively low, indicating reduced selling pressure during the fall.

### 3. **MACD Indicator**:
- **MACD Lines**:
- The MACD line (blue) is crossing above the signal line (red) around Bottom 2, which is a **bullish crossover**.
- **Histogram**:
- The histogram bars are turning green and increasing, signaling strengthening bullish momentum.

### 4. **RSI (Relative Strength Index)**:
- **Trend**:
- RSI is rising from oversold levels (below 30), confirming increasing bullish momentum.
- **Current Value**:
- The RSI is nearing the **neutral zone (50)**, suggesting that the price is still in the early stages of recovery.

### 5. **ATR Trailing Stops**:
- The **ATR (Average True Range)** trailing stops suggest the price has broken above a previous level of resistance, adding to the bullish case.

### 6. **Zones**:
- **Green Zones**: Represent potential buying or accumulation phases.
- **Red Zones**: Represent selling or distribution phases. The switch from red to green further supports the bullish reversal.



### **Conclusion**:
This chart indicates a potential bullish reversal:
1. **Double Bottom Formation** near strong support.
2. Bullish **MACD crossover** and RSI divergence.
3. Increased **volume at support** levels.



### **Next Steps for Trading**:
- **Entry Point**: Consider entering above **₹1,180** if the price sustains.
- **Stop Loss**: Place a stop loss below **₹1,120** (recent swing low).
- **Target Levels**: The first target could be **₹1,300**, with the second target near **₹1,400**.