ICICI Lombard GIC Ltd. - Technical AnalysisPrice Action:
The stock recently took support near the 0.5 Fibonacci retracement level around ₹1,892, bouncing back with strong momentum. This aligns with a visible bullish RSI divergence as the price formed lower lows while the RSI made higher lows, signaling a potential reversal.
Key Levels (from Fibonacci):
Resistance 1: ₹1,987 (61.8% Fibonacci level)
Resistance 2: ₹2,127 (78.6% Fibonacci level)
Final Target: ₹2,299 (Fibonacci extension, previous high)
Support 1: ₹1,892 (0.5 Fibonacci level, current support)
Support 2: ₹1,796 (38.2% Fibonacci level)
Support 3: ₹1,677 (23.6% Fibonacci level)
Entry, Stop Loss, and Targets:
Entry: Around ₹1,940-₹1,950 (post breakout confirmation above ₹1,950).
Stop Loss: ₹1,875 (below the 0.5 Fibonacci level and near recent support).
Targets:
Target 1: ₹1,987 (61.8% Fibonacci level)
Target 2: ₹2,127 (78.6% Fibonacci level)
Target 3: ₹2,299 (previous swing high)
Volume and RSI Observations:
The volume profile shows increased participation near ₹1,900 levels, confirming accumulation.
RSI is recovering from oversold levels and shows divergence, supporting a potential bullish continuation.
Conclusion:
If the stock holds above ₹1,892, the bullish trend might continue toward ₹1,987 and higher targets. Maintain discipline with the stop-loss to manage risk effectively.
