EDEN.N DailyThis chart and analysis are not financial advice. Do your own research before trading or investing.
Price Trend:
The stock is consolidating within a triangle pattern, which suggests a potential breakout soon. This means that the price is squeezing between two converging lines, and when it breaks out of the pattern, a larger move (either up or down) can be expected
Support and Resistance Levels:
The price fluctuates within the support/resistance zone of LKR 14.20 to 14.60 (highlighted in yellow). These are important levels where the price has historically struggled to move beyond or below.
The chart also shows several Fibonacci levels that indicate possible areas where the stock may face resistance if it moves higher (R: 15.20-15.50 and R: 16.60-17.40) or support if it declines (S: 13.30-13.70).
Moving Average Analysis:
DMA 20 (Yellow Line) is close to the current price, indicating the stock oscillates around its short-term trend. A move above this could suggest a short-term upward move.
DMA 50 (Purple Line) is slightly below the current price, supporting the medium-term bullish (upward) trend.
DMA 200 (Blue Line) is far below the current price, which confirms that the long-term trend is still positive. When the price is above the 200-day moving average, it’s a sign of general strength in the stock.
RSI (Relative Strength Index):
It's around 67.77, which is still under 70, suggesting there's room for more upward movement.
Potential Move:
The triangle pattern suggests a breakout could be imminent. A breakout above the upper resistance line could push the price towards the next target at around LKR 15.20-15.50.
Bullish Scenario: If the stock breaks above LKR 14.60 (the upper side of the triangle), the next targets are LKR 15.20-15.50 and possibly LKR 16.60-17.40. The stock is above its 50-day- and 200-day moving averages, supporting a long-term uptrend.
