Technical Analysis Vedanta Limited

The stock

had a fantastic run from October through late January. It climbed steadily from the ₹425 range all the way up to a peak of around ₹750-₹760. This shows the stock has had strong positive momentum over the last few months. Right now the stock is in a correction or a pullback phase. After hitting its peak the price has started making lower highs and lower lows. This means the short-term trend has turned weak bearish as sellers are currently taking profits. Resistance look at the dotted line on your chart around ₹681.45. The stock recently fell below this line. In technical analysis broken support often becomes new resistance. So if the stock tries to go back up it will likely struggle to cross the ₹681 to ₹700 area. Support since the price is falling where might it stop.? The next major psychological floor is around ₹600. If it falls below that the previous area where the price paused in December around ₹550 to ₹575 could act as strong support. If you are thinking of buying it is usually safer to wait for the stock to stop falling build a base and show a strong green candle before jumping in. Catching a falling stock can be risky.! Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.