Technical Analysis Asian Paints Ltd.

The stock

is after a massive rally in 2020-2021 the stock entered a long period of consolidation moving sideways between ₹2600 and ₹3500. However the recent price action is concerning. The stock has broken below the critical support level of ₹2600 making a series of Lower Highs and Lower Lows. Immediate resistance ₹2600. This was previously a strong support but in technical analysis broken support becomes resistance. The stock needs to cross this level to show any signs of recovery. Major resistance ₹3000. This is a psychological barrier where selling pressure usually increases. Next support zone the stock is currently searching for a bottom. Based on historical data from late 2020 the next major support zone lies around ₹1800 – ₹2000. Sort-term bearish the stock is in a free-fall state. Buying right now is risky because there is no reversal signal like a Double Bottom or a bullish candle yet. Long-Term the stock has wiped out almost three years of gains. It is entering a Value Zone but technically it remains weak until it stops making new lows. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.