ACE - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.6

📊 Technical Overview of Action Construction Equipment Ltd. (ACE)

📉 Trend Analysis

Current Price: ₹1,119

50 DMA: ₹1,185

200 DMA: ₹1,232

Trend Status: The stock is reversing downward, trading below both key moving averages. This indicates a bearish phase with weakening momentum and potential for further downside unless a reversal pattern emerges.

📉 Momentum Indicators

RSI (36.2): Near oversold territory, suggesting weak momentum. A dip below 30 could trigger a technical bounce.

MACD (-26.1): Deeply negative, confirming strong bearish sentiment and lack of short-term recovery signals.

Volume: At 1.32L, below 1-week average of 1.57L. Indicates low participation, which weakens the case for a reversal.

📊 Bollinger Bands

Price likely near the lower band, consistent with RSI and MACD weakness.

This setup may precede a short-term bounce, but only if volume and RSI stabilize.

📈 Moving Averages Summary

Indicator Value (₹) Signal

50 DMA 1,185 Resistance

200 DMA 1,232 Strong Resistance

Current Price 1,119 Below both DMAs

🔍 Support & Resistance Levels

Type Price Range (₹) Notes

Support 1 1,090–1,100 Near-term support zone

Support 2 920–940 52-week low zone

Resistance 1 1,185–1,200 50 DMA zone

Resistance 2 1,230–1,250 200 DMA and prior breakdown level

🎯 Entry & Exit Strategy

Optimal Entry Zone: ₹1,090–₹1,100 (if RSI stabilizes and MACD flattens)

Exit Zone (Short-Term): ₹1,185–₹1,200 (initial resistance), ₹1,230–₹1,250 (if reversal confirms)

Stop Loss: ₹920 (below 52-week low)

📌 Summary

Trend: Reversing downward

Momentum: Bearish and oversold

Volume: Weak, no confirmation of reversal

Setup: High-risk zone; wait for bullish divergence or volume spike before entry

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