Alkem Laboratories Ltd. (NSE: ALKEM)
Technical Analysis and Key Levels
1.Current Price Action:
Alkem Laboratories is trading at ₹5,484.40, testing a critical support zone (₹5,300–₹5,450) identified by historical price action and volume profile.
2.Resistance and Support Levels:
3.Volume Profile:
4.Moving Averages:
5.RSI Indicator:
The RSI is neutral but leaning towards the oversold region, suggesting potential accumulation in this zone. A break below ₹5,323 could push RSI into bearish territory.
6.Key Observations:
7.Potential Scenarios:
8.Trading Strategy:
For Bulls: Look for confirmation above ₹5,811.55 with increased volumes before entering long positions.
For Bears: Short opportunities arise if the stock breaks and sustains below ₹5,323.60 with a target near ₹4,629.85.
1.Current Price Action:
Alkem Laboratories is trading at ₹5,484.40, testing a critical support zone (₹5,300–₹5,450) identified by historical price action and volume profile.
2.Resistance and Support Levels:
- Immediate Resistance: ₹5,811.55 (previous swing high).
- Key Resistance Zone: ₹6,000–₹6,346.55. A breakout above ₹6,346.55 can lead to fresh bullish momentum.
- Immediate Support: ₹5,323.60 (near-term support).
- Critical Support: ₹4,629.85, a major demand zone. Failure to hold this level could trigger further downside.
3.Volume Profile:
- High-Volume Node (HVN): Significant buying interest is observed around ₹5,450–₹5,800.
- Low-Volume Node (LVN): Below ₹5,300, liquidity decreases, increasing the risk of a sharp drop toward ₹4,629.85.
4.Moving Averages:
- The stock is currently hovering around the 50-day moving average, indicating short-term indecision.
- The 200-day moving average at ₹5,323.60 acts as crucial support for long-term trend analysis.
5.RSI Indicator:
The RSI is neutral but leaning towards the oversold region, suggesting potential accumulation in this zone. A break below ₹5,323 could push RSI into bearish territory.
6.Key Observations:
- Nomura's Price Target Update: Nomura revised the price target to ₹6,097 (Neutral stance), close to the immediate resistance levels, which aligns with market consolidation.
7.Potential Scenarios:
- Bullish Case: Sustaining above ₹5,484.40 and breaking ₹5,811.55 may open doors for ₹6,346.55.
- Bearish Case: A decisive break below ₹5,323.60 could lead to ₹4,629.85.
8.Trading Strategy:
For Bulls: Look for confirmation above ₹5,811.55 with increased volumes before entering long positions.
For Bears: Short opportunities arise if the stock breaks and sustains below ₹5,323.60 with a target near ₹4,629.85.
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