Alkem Laboratories Limited Stock Forecast

Alkem Laboratories Limited stock price ended at ₹5,437.70 on Friday, after gaining 2.25%.
(Updated on May 17, 2024)

ALKEM.NS Signals & Forecast

Mostly positive signals in the chart today. The Alkem Laboratories Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹5,227.55 and ₹4,934.98. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 17.79%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

Support, Risk & Stop-loss for Alkem Laboratories Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at ₹5,148.95 and ₹5,061.85. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Alkem Laboratories Limited finds support just below today's level at ₹5,148.95. If this is broken, then the next support from accumulated volume will be at ₹5,061.85 and ₹5,044.05.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved ₹192.30 between high and low, or 3.65%. For the last week, the stock has had daily average volatility of 3.20%.

The Alkem Laboratories Limited stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: ₹5,166.90 (-4.98%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 20 days ago.)

Trading Expectations (ALKEM.NS) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect Alkem Laboratories Limited to open at ₹5,390.13, and during the day (based on 14 day Average True Range), to move between ₹5,292.24 and ₹5,583.16, which gives a possible trading interval of +/-₹145.46 (+/-2.68%) up or down from last closing price. If Alkem Laboratories Limited takes out the full calculated possible swing range there will be an estimated 5.35% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at ₹5,471.85 (0.63%) than the support at ₹5,148.95 (5.31%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Alkem Laboratories Limited stock A Buy?

Several short-term signals are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term.

Current score: 3.456 Buy Candidate Unchanged

Predicted Opening Price for Alkem Laboratories Limited of Monday, May 20, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.