NSE: Vedanta Technical Analysis and technical charts

NSE: Vedanta Technical Analysis (nse: VEDL)

Weekly research report

Vedanta limited is a perfect trading stock and is part of the following indexes:

  • Nifty
  • CNXMNC
  • CNXCMMDTY
  • CNXMETAL

The stock of Vedanta ltd. was trading near 110 levels last year in June, Restructuring in the company saw an increase in promoter holding. Technically Inverse head and shoulder pattern breakout happened near 117.  The target of reversal pattern was done near 180-200 levels.

What next?

Let’s analyze Vedanta on Weekly time frame charts. The stock has been in an uptrend from 2016 and has made top near 280 levels. In the figure, we can see that stock is in a rising channel and is at the bottom trend-line support. The stock is consolidating in a triangle pattern which tells Me, The price seems to have reached a bottom, showing signs of reversal. If trendline is broken upward after a period of uncertainty or consolidation we might see stock reaching at least 280 again or more.

Vedanta bullish chart

 

Next Scenario?

Analysis started from Head and shoulders above. We have seen the bullish h&S impact. Now, let’s see the Bearish H&S. The pattern has not been confirmed yet. Although It is a high probability. Reasons for bearishness are:

  • The stock is trading below 50 days Moving Average.
  • The stock has broken long-term trend line (blue line) and is now getting ready for the next momentum.
  • On daily charts, VEDL is forming a Rising wedge (bearish pattern).
  • Price has not been able to break and close above 250 on previous 5 occasions.

 

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vedanta

Medium-term NSE: Vedanta Technical Analysis

Short term view?

I personally will wait for the price to decisively break the range 250-225. Few levels are mentioned below:

Short term Support at:Short term Resistance at:

229

246

Stock Price

For long position:

216

For short position:

250

 

In my personal opinion Stock is more inclined towards bearishness. Wait and watch Vedanta Ltd. to make any fresh positions.

 

Disclaimer: I do not hold any vested interest, position in the stock. All views are my studies and are not a recommendation for trade.

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