Colgate Palmolive (India) Limited (COLGATEPALMOLIVE.10, NSE)
Trend Analysis:
Uptrend: From August to October 2024, the stock was in a clear uptrend, moving from around 2400 INR to a peak near 3400 INR. This is indicated by the series of higher highs and higher lows.
Downtrend: Post-October 2024, the stock entered a downtrend, dropping significantly until around mid-December 2024, where it found some support. This is shown by the downward slope of the price action and the breaking of support levels.
Moving Averages:
The chart includes several moving averages:
The green line (likely a longer-term moving average like the 200-day) shows a gentle upward slope, suggesting a long-term bullish trend despite the recent downturn.
The red line (possibly a 50-day moving average) and the black line (potentially a 20-day moving average) are also present. The price has crossed below these shorter-term moving averages, indicating bearish momentum in the short term.
Support and Resistance:
Support: Around 2800 INR, there's a notable support level where the price has bounced back multiple times since late December 2024. This is marked by the horizontal green line.
Resistance: The previous high near 3400 -3413 INR acts as a resistance level, which the stock failed to break through after the initial peak in October.
Volume Analysis:
Volume isn't shown in the chart, but typically, volume analysis would help confirm trends. High volume on downtrends could indicate strong selling pressure, while low volume on uptrends might suggest weak buying interest.
Gann Fan:
The chart uses a Gann Fan, which is a technical analysis tool based on the principles of W.D. Gann. The fan lines help to identify potential support and resistance levels based on geometric angles. The price has been interacting with these lines, particularly finding support at the 1x1 angle (green line) around January 2025.
Recent Activity :
As of late January 2025, the stock seems to be testing the support level again around 2800 INR. There's a small green candle indicating a slight recovery or at least a pause in the downtrend.
Indicators and Patterns:
The chart shows potential for a double bottom pattern around the 2800 level, which could be a bullish reversal pattern if confirmed by subsequent price action.
The presence of the blue circle might indicate a point of interest or a potential reversal signal based on the user's analysis.
Conclusion:
The stock has experienced a significant correction after a strong uptrend. It's currently testing a critical support level around 2800 INR. If this support holds, there could be a potential reversal or at least a consolidation phase. If it breaks below this level, further downside might be expected, targeting the next support around 2600 INR.
Investors should watch for confirmation of support or a break below it, along with volume changes and any news or events related to Colgate Palmolive India that could influence stock movement.
Remember, while technical analysis provides insights, fundamental analysis and external market conditions should also be considered for a comprehensive investment decision. If you need further analysis or real-time data, please let me know if you'd like me to search for additional information.
