Sharda Ispat Limited Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
![Bollinger Bottleneck Buy Pattern 1](https://stockinvest.us/assets/img/legend/boll_tight.gif?v=129805e49c0e70f186cb67723097252dce2833f4)
![Bollinger Bottleneck Buy Pattern 2](https://stockinvest.us/assets/img/legend/boll_tight2.gif?v=129805e49c0e70f186cb67723097252dce2833f4)
![Bollinger Bottleneck Sell Pattern](https://stockinvest.us/assets/img/legend/boll_tight3.gif?v=129805e49c0e70f186cb67723097252dce2833f4)
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Strong day for Sharda Ispat Limited stock price on Friday rising 10.00% to ₹590.80
(Updated on Jun 21, 2024)
The Sharda Ispat Limited stock price gained 10.00% on the last trading day (Friday, 21st Jun 2024), rising from ₹537.10 to ₹590.80. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 5.09% from a day low at ₹562.20 to a day high of ₹590.80. The price has risen in 8 of the last 10 days and is up by 88.06% over the past 2 weeks. Volume fell on the last day by -12 thousand shares and in total, 6 thousand shares were bought and sold for approximately ₹3.32 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock has broken the wide and strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at ₹383.14, a level that may pose a second chance to hit a runner.
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SHRDAIS.BO Signals & Forecast
The Sharda Ispat 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 ₹431.57 and ₹326.34. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, June 04, 2024, and so far it has risen 106.79%. 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 Sharda Ispat Limited stock
On the downside, the stock finds support just below today's level from accumulated volume at ₹537.10 and ₹494.70. With no support from accumulated volume below today's level the risk is increased, as a drop below the support at ₹494.70 may give a huge drop in the stock price.
This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved ₹28.60 between high and low, or 5.09%. For the last week, the stock has had daily average volatility of 8.28%.
The Sharda Ispat Limited stock is extremely overbought on RSI14 (85). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the Sharda Ispat Limited has been rising for 6 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.
Our recommended stop-loss: ₹574.26 (-2.80%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 85 and this increases the risk substantially. There is a buy signal from a pivot bottom found 19 days ago.)
Trading Expectations (SHRDAIS.BO) For The Upcoming Trading Day Of Monday 24th
For the upcoming trading day on Monday, 24th we expect Sharda Ispat Limited to open at ₹581.27, and during the day (based on 14 day Average True Range), to move between ₹556.53 and ₹625.07, which gives a possible trading interval of +/-₹34.27 (+/-5.80%) up or down from last closing price. If Sharda Ispat Limited takes out the full calculated possible swing range there will be an estimated 11.60% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ ₹537.10, some ₹53.70 (9.09%) from the current price of ₹590.80, our system finds the risk reward attractive.
Is Sharda Ispat Limited stock A Buy?
Sharda Ispat Limited holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
Current score: 0.000 Hold/Accumulate Unchanged
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for Sharda Ispat Limited of Monday, June 24, 2024
Fair opening price June 24, 2024 | Current price |
---|---|
₹581.27 ( 1.61%) | ₹590.80 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for SHRDAIS.BO
Fibonacci Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 609.87 | 3.23% |
R2 | 598.94 | 1.38% |
R1 | 592.19 | 0.236% |
Price | 590.80 | |
S1 | 570.34 | -3.46% |
S2 | 563.59 | -4.61% |
S3 | 552.67 | -6.45% |
Accumulated Volume Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 0 | - |
R2 | 0 | - |
R1 | 0 | - |
Price | 590.80 | |
S1 | 537.10 | -9.09% |
S2 | 494.70 | -16.27% |
S3 | 0 | - |
FAQ
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