Technical Analysis Voltas Limited

The stock

chart is currently trading at 1,414.20 shows a stock attempting a steady recovery after a sharp historical downtrend. Following that heavy drop, the stock formed a base and has been in a choppy but upward-moving consolidation phase. Recently it hit a strong peak near the 1550 - 1600 zone but is currently in a retracement or profit-booking phase sliding back toward its moving averages. Immediate resistance the recent swing high around 1550 - 1600 is the main hurdle. The stock needs to break and close above this zone with good volume to confirm a fresh strong bullish rally. Immediate support the stock is currently pulling back into a critical zone around 1380 - 1400. If buyers step in here it could act as a bounce-pad for the next upward leg. Major support if the current levels fail to hold the next strong structural support is around the 1250 - 1300 zone. There is also a major long-term base marked on your chart at 1192.60. The stock is currently in a medium-term uptrend but facing a short-term correction. It is at a critical wait and watch level. If it respects the current 1400 support area we could see a bounce back toward 1550. However if the selling volume increases and it breaks lower it will likely test the stronger support base at 1248. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.