MANAPPURAM FINANCE LTD - APPROACHING RESISTANCE AREA
Symbol - MANAPPURAM
Manappuram Finance Ltd. has been experiencing a recovery from lower levels in recent weeks. The stock has bounced back from support zones and is now testing key resistance areas. However, it faces considerable challenges at higher levels, showing signs of consolidation as it approaches its resistance zones.
The overall trend appears to be in recovery, following a significant dip. However, the stock is facing resistance at higher levels, indicating a potential pause or consolidation before any significant movement.
Short-term trend looks slightly bearish, as the stock has encountered selling pressure at resistance levels and is currently consolidating. Long-term trend remains positive, driven by the company’s strong fundamentals in the gold loan market.
The stock is currently trading within an ascending triangle pattern and is consolidating near key resistance levels. My personal bias is towards the downside, and we could potentially see a sell-off from the resistance zone towards the triangle support trendline, with the possibility of a move below it.
The trade strategy could involve looking for short opportunities near the resistance zone, especially if the stock fails to break out and begins to reverse. However, if the stock manages to break above the resistance trendline of the ascending triangle, the bias would shift to the upside.
Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my trading position. You can track it for educational purposes. Thanks!
Manappuram Finance Ltd. has been experiencing a recovery from lower levels in recent weeks. The stock has bounced back from support zones and is now testing key resistance areas. However, it faces considerable challenges at higher levels, showing signs of consolidation as it approaches its resistance zones.
The overall trend appears to be in recovery, following a significant dip. However, the stock is facing resistance at higher levels, indicating a potential pause or consolidation before any significant movement.
Short-term trend looks slightly bearish, as the stock has encountered selling pressure at resistance levels and is currently consolidating. Long-term trend remains positive, driven by the company’s strong fundamentals in the gold loan market.
The stock is currently trading within an ascending triangle pattern and is consolidating near key resistance levels. My personal bias is towards the downside, and we could potentially see a sell-off from the resistance zone towards the triangle support trendline, with the possibility of a move below it.
The trade strategy could involve looking for short opportunities near the resistance zone, especially if the stock fails to break out and begins to reverse. However, if the stock manages to break above the resistance trendline of the ascending triangle, the bias would shift to the upside.
Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my trading position. You can track it for educational purposes. Thanks!
Penafian
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