Paul Merchants Limited Stock Forecast
Weaker technical forecast for Paul Merchants Limited as stock downgraded to Sell Candidate.
(Updated on May 31, 2024)
The Paul Merchants Limited stock price fell by -2.89% on the last day (Friday, 31st May 2024) from ₹822.75 to ₹798.95. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 4.55% from a day low at ₹795.00 to a day high of ₹831.20. The price has fallen in 8 of the last 10 days and is down by -17.85% for this period. Volume has increased on the last day by 4 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 5 thousand shares were bought and sold for approximately ₹3.63 million.
The stock is at the lower part of a very wide and horizontal trend in the short term, and normally this may pose a good buying opportunity, though a breakdown through the bottom trend line at ₹787.80 will give a strong sell signal and a trend shift may be expected. Given the current horizontal trend, you can expect Paul Merchants Limited stock with a 90% probability to be traded between ₹790.34 and ₹1,047.18 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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PML.BO Signals & Forecast
There are few to no technical positive signals at the moment. The Paul Merchants Limited stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at ₹846.35 and ₹932.57. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, May 16, 2024, and so far it has fallen -17.85%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
Support, Risk & Stop-loss for Paul Merchants Limited stock
Paul Merchants Limited finds support from accumulated volume at ₹784.80 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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 ₹36.20 between high and low, or 4.55%. For the last week, the stock has had daily average volatility of 4.11%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (PML.BO) For The Upcoming Trading Day Of Monday 3rd
For the upcoming trading day on Monday, 3rd we expect Paul Merchants Limited to open at ₹808.38, and during the day (based on 14 day Average True Range), to move between ₹754.69 and ₹843.21, which gives a possible trading interval of +/-₹44.26 (+/-5.54%) up or down from last closing price. If Paul Merchants Limited takes out the full calculated possible swing range there will be an estimated 11.08% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at ₹784.80 (1.77%) than the resistance at ₹887.00 (11.02%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Paul Merchants Limited stock A Buy?
Paul Merchants Limited holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -1.942 Sell Candidate Downgraded
Predicted Opening Price for Paul Merchants Limited of Monday, June 3, 2024
| Fair opening price June 3, 2024 | Current price |
|---|---|
| ₹808.38 ( 1.18%) | ₹798.95 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for PML.BO
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 844.58 | 5.71 % | |
| R2 | 830.75 | 3.98 % | ||
| R1 | 822.21 | 2.91 % | ||
| Current price: | 798.95 | |||
| Support | S1 | 794.55 | -0.550 % | |
| S2 | 786.01 | -1.62 % | ||
| S3 | 772.18 | -3.35 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 969.25 | 21.32 % | |
| R2 | 915.55 | 14.59 % | ||
| R1 | 887.00 | 11.02 % | ||
| Current price | 798.95 | |||
| Support | S1 | 784.80 | -1.77% | |
| S2 | 0 | . | ||
| S3 | 0 | . |
FAQ
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