Technical Analysis of EMAMILTD & NMDC

Stock name: Emami Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Starting March 2023, the stock displayed an upward trend, stabilizing from August 2023 and forming a double top pattern on the daily chart between August 2023 and February 2024. A breakout from this pattern occurred on February 8, 2024, leading to a subsequent downward movement. The stock's RSI is currently at a notably low level. Technical analysis suggests that if the stock maintains this momentum, it may experience further downward movement.

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Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: NMDC Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

Since January 2010, the stock has experienced a downward trend, followed by a stabilizing phase over an extended period, showing signs of improvement only recently. It has successfully reached its March-April 2011 levels and exhibited a rounding bottom pattern between March 2011 and January 2024, culminating in a breakout in January 2024. This breakout was accompanied by above-average trading volume. However, caution is warranted as the stock is currently in an overbought state according to the RSI, and a bearish pattern has formed on its daily chart, suggesting a potential retest of the breakout levels. Despite these challenges, according to technical analysis, maintaining the breakout momentum may lead to further upward movement.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

 

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