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s – Technical Outlook Suggests Possible Pullback After Overbought Signals

has witnessed a strong bullish momentum, posting seven consecutive positive closings between 26th June 2025 and 4th July 2025. This sustained uptrend reflects strong buying interest; however, recent technical indicators are now pointing towards a potential short-term correction. From 1st July to 4th July, the daily candlesticks were formed completely outside the upper band of the Bollinger Band, a condition typically associated with overbought levels. Such price action suggests that the stock may have rallied too far too fast, and a pullback or consolidation could be on the horizon. Supporting this view, the Relative Strength Index (RSI) has surged to 83, which is significantly above the overbought threshold of 70. An RSI at this level indicates that the stock is in an overheated zone and may not sustain the current momentum without a healthy correction. Given these signals, a short-term decline in the stock price may be expected. In such a scenario, the 20-day Moving Average—which currently acts as dynamic support—could serve as a key support level to watch. A retracement towards this level may provide a more favorable entry point for investors looking to participate in the stock’s longer-term trend. Key Insights: Bollinger Bands: Candlesticks closing outside the upper band signal potential overextension. RSI at 83: Highlights extremely overbought conditions. Support level: The 20-day Moving Average may provide strong support in case of a pullback. Stock price may move toward the level of 730