Updated

SBI Life Insurance Co. Ltd (NSE: SBILIFE) - Technical Analysis

Price Action and Fibonacci Analysis

SBI Life is currently trading at ₹1,628.85, which is near a crucial Fibonacci retracement level:

1. Fibonacci Levels:

The price previously peaked around ₹1,935.10, forming a possible double-top pattern.
It has since retraced, approaching the 50% retracement level at ₹1,624.75, a significant support zone. This level often acts as a key point for potential rebounds.
Below this, the 61.8% level at ₹1,551.50 is the next major support. If the price declines further, this level could provide strong support.

2. Volume Profile:

The Volume Profile on the right suggests a high volume node around ₹1,450, indicating strong accumulation in this zone. This level, if reached, could serve as a significant support area and potential bounce point.

3. Moving Averages:

The stock is currently trading near the 200-day moving average (black line), which may act as a long-term support level.
The 50-day (blue) and 100-day (red) moving averages are above the current price, indicating that the stock has broken below its short- and medium-term trend lines.

Technical Indicators

1. Relative Strength Index (RSI):

The RSI is showing signs of being in the lower half of its range but hasn’t reached oversold territory, suggesting there may be further downside before a potential rebound.

2. Volume Trends:

There has been a significant increase in volume during the recent pullback, indicating strong selling pressure.

Conclusion and Potential Scenarios

Bullish Scenario: If the stock holds the 50% Fibonacci level at ₹1,624.75 and the 200-day moving average, we could see a recovery toward the 38.2% level at ₹1,698.00, with further resistance at ₹1,788.60.
Bearish Scenario: A break below ₹1,624.75 could lead the price toward the 61.8% level at ₹1,551.50. A further decline might see the price test the high-volume node around ₹1,450.

Trading Strategy

For Long Positions: Watch for a bounce near ₹1,624.75 or ₹1,551.50 with confirmation from volume and RSI improving from lower levels.
For Short Positions: A breakdown below ₹1,624.75, particularly with strong volume, could present a shorting opportunity down to ₹1,551.50 or potentially lower.

Note: Always consider market conditions and use proper risk management techniques.

Trade closed: target reached

short target hit

AngshumanSaikia

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

AngshumanSaikia

Also on: