PAYTM Clearly leaning towards 1000The chart depicts the weekly timeframe analysis of Paytm (ONE 97 Communications Ltd) stock, showing a significant resistance level near the 820 INR price zone, represented by the thick blue horizontal line. Paytm’s stock has been on an upward trajectory, bouncing from lower levels, and is now testing critical resistance levels. The trendline, descending from previous highs, also intersects at this resistance zone, making it a crucial level to break for further upside.
The green zone suggests a potential upside for Paytm, with target levels marked at 966, 1124, and 1307 INR, indicating possible Fibonacci retracement targets if the breakout sustains. These levels correspond to the 61.8%, 70.0%, and 78.2% Fibonacci retracements, commonly seen as important levels in technical analysis. A successful weekly close above 820 INR could pave the way for these targets, signifying bullish momentum continuation.
However, the chart also highlights a risk factor for bulls: the “Bull view invalidates below 626 on weekly closing” warning. This suggests that if the stock closes below 626 INR on a weekly basis, it could signal a trend reversal, potentially leading to a bearish outlook. Additionally, the volume bars indicate heightened buying interest in recent weeks, further supporting a possible breakout scenario.
For investors or traders, maintaining a bullish stance above the 626 INR support with a close watch on volume could be a prudent strategy. The moving averages (SMA 532.42 and SMA 617.42) also serve as dynamic support levels, adding to the stock’s current bullish sentiment.
