Maruti Suzuki India Limited shows weak
development in a falling trend channel in
the medium long term. Falling trends
indicate that the company experiences
negative development and falling buy
interest among investors. The stock has
broken a double bottom formation. A
decisive break of the resistance at 8942
will signal a rise to 9707 or more. The
stock is testing resistance at rupee 8950.
This could give a negative reaction, but an
upward breakthrough of rupee 8950 means
a positive signal. Volume tops and volume
bottoms correspond well with tops and
bottoms in the price. This weakens the
falling trend and could be an early signal of
a coming trend break. RSI above 70 shows
that the stock has strong positive
momentum in the short term. Investors
have steadily paid more to buy the stock,
which indicates increasing optimism and
that the price will continue to rise. However,
particularly for big stocks, high RSI may be
a sign that the stock is overbought and that
there is a chance of a reaction downwards.
The RSI curve shows a rising trend, which
is an early signal of a possible trend
reversal upwards for the price as well. The
stock is overall assessed as technically
positive for the medium long term.
