EID Parry is currently forming a Higher High, Higher Low structure, suggesting an ongoing uptrend. However, the stock has surged toward its rising trendline, which may act as a near-term resistance.
Notably, the decline in volume during this price rise signals weakening momentum. The stock is trading 25% above its mean, while historically it tends to stretch up to 31%, placing the mean near Rs 1222.
The RSI indicator is hovering near the overbought zone, hinting at early signs of exhaustion. Meanwhile, the Directional Indicator remains range-bound, reinforcing a cautious outlook.
Given this setup, the stock may retrace toward its mean, and fresh entries are best avoided at current levels until clearer strength or a pullback emerges.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
