RECLTD - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.8

Here’s a detailed technical analysis of REC Ltd (RECLTD)

📊 Trend Overview

Current Trend: The stock is in a mild downtrend, trading slightly above its 50-DMA (₹382) but still below its 200-DMA (₹418), suggesting short-term stabilization but long-term weakness.

52-Week Positioning: At 15.9% of its 52-week range (₹349 – ₹573), the stock is near its yearly low, indicating significant downside from peak levels and potential for a base formation.

📈 Momentum Indicators

RSI (58.7): Neutral to bullish. Indicates improving momentum with room for further upside before entering overbought territory.

MACD (-0.37): Slightly negative, suggesting fading bearish momentum. A crossover above zero would confirm bullish reversal.

Volume: Current volume (57.3L) is above the 1-week average (43.3L), indicating increased participation and possible accumulation.

📉 Chart Patterns & Moving Averages

Price Action: The stock is consolidating near its 50-DMA, forming a potential base between ₹375 and ₹390. A breakout above ₹400 would signal trend reversal.

Support Levels

₹375 – recent swing low and psychological support

₹349 – 52-week low and major support

Resistance Levels

₹400–₹418 – 200-DMA and short-term resistance zone

₹440–₹460 – previous breakdown zone

📌 Bollinger Bands

Price is near the middle band, with bands narrowing. This suggests low volatility and potential for a breakout if volume sustains.

🎯 Entry & Exit Zones

Action Price Zone (₹) Rationale

Entry 375–385 Near support and 50-DMA

Exit (Short) 400–418 Resistance zone, near 200-DMA

Exit (Long) 440–460 If breakout sustains above ₹418

🔍 Market Behavior

Trending: Mild downtrend, with signs of stabilization.

Consolidating: Yes, price is range-bound between ₹375–₹418.

Reversing: Not yet. MACD remains negative; RSI is improving.

🧠 Summary

RECLTD is technically stabilizing near its 50-DMA with improving RSI and volume. MACD remains weak but could turn positive soon. Traders may consider accumulating near ₹375–₹385 and watch for breakout above ₹418 for confirmation of trend reversal toward ₹460.

Let me know if you’d like to compare this setup with other high-dividend PSU financial stocks.

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