Dixon Now Trading Near A Very Strong Support Zone

27 oct.

✅The stock has been consistently trending within an ascending channel for most of the year, respecting both the upper and lower trendlines. Currently, it has pulled back to a key support zone near 13800, which coincides with the lower trendline of the channel, suggesting a potential bounce from these levels.

✅ The 50 EMA has provided solid support to the stock during pullbacks within this trend. This EMA, coupled with the lower trendline, forms a strong support base around 13800–13900. As long as the stock holds above this level, the bullish trend remains intact. The recent correction saw a spike in selling volume, indicating profit-taking at higher levels. However, as the price approaches support, we would expect buying interest to increase if this level holds signalling potential accumulation for a renewed upward move.

✅ The RSI stands at 43 approaching an oversold territory. Historically, the stock has rebounded when the RSI reached similar levels hinting at a potential reversal. If RSI rises from this zone it would confirm a build-up in bullish momentum.

🚨 The immediate resistance is at 15000 which aligns with the upper boundary of the channel and has acted as a cap for previous rallies. A breakout above 15000 could lead to an accelerated move towards 15500 and potentially 16000 the upper trendline of the channel.

🚨The 13000 level now acts as a crucial support. Any dip below this zone could indicate a break from the uptrend channel making this a significant level for managing downside risk. Given the combination of trendline support 50 EMA strength and RSI nearing oversold levels Dixon Technologies appears set for a bounce. Traders should watch for a surge in volume to confirm renewed buying interest around the support zone.