RHIM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

Here’s a detailed technical analysis of RHI Magnesita India Ltd (RHIM)

📊 Trend Overview

Current Trend: The stock is in a neutral to mildly bearish phase, trading right at its 50-DMA (₹483) and slightly below its 200-DMA (₹495). This suggests indecision and lack of strong directional momentum.

52-Week Positioning: At 40.1% of its 52-week range (₹376 – ₹640), the stock is in the lower half, indicating a pullback from highs and potential base formation.

📈 Momentum Indicators

RSI (50.3): Neutral. Neither overbought nor oversold, indicating a lack of clear momentum.

MACD (-2.75): Bearish. Negative crossover suggests fading momentum and absence of bullish confirmation.

Volume: Current volume (1.64L) is slightly above the 1-week average (1.51L), showing mild interest but not breakout-level participation.

📉 Chart Patterns & Moving Averages

Price Action: The stock is hovering around key moving averages, forming a sideways channel between ₹470 and ₹495. No clear breakout or breakdown yet.

Support Levels

₹470 – recent swing low and psychological support

₹455 – next demand zone if weakness persists

Resistance Levels

₹495 – 200-DMA and short-term ceiling

₹520–₹540 – previous breakdown zone

📌 Bollinger Bands

Price is near the middle band, with bands narrowing. This reflects low volatility and a potential squeeze setup—watch for volume expansion to confirm direction.

🎯 Entry & Exit Zones

Action Price Zone (₹) Rationale

Entry 470–480 Near support and consolidation base

Exit (Short) 495–500 Resistance zone, near 200-DMA

Exit (Long) 520–540 If breakout sustains above ₹500

🔍 Market Behavior

Trending: No, currently range-bound.

Consolidating: Yes, price is oscillating between support and resistance.

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

🧠 Summary

RHIM is technically consolidating with weak momentum. Price action near moving averages and neutral indicators suggest indecision. Traders may consider accumulating near ₹470–₹480 with tight stop-losses and watch for breakout above ₹500 for confirmation of trend reversal toward ₹540.

Let me know if you'd like to compare RHIM with peers in the industrial materials or refractory segment.

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