The Proud Owning Company of Royal Enfield Bikes, Eicher Motors, is struck within the range. Stock price movements are not much of an encouragement for investors.
The Potential Support zone is around 2400 and the Resistance zone is around 3000.
Together, the levels have formed a strong boundary which prices were unable to break.
We can clearly notice the Range or Sideways Market behaviour on the Weekly chart. Take a look at the Price Action
Eicher Motors – Price Action Trading Analysis on 1W Timeframe
After a temporary Uptrend, the Price Structure changed and moved into a Range-Bound market.
It’s an Intermediate Range, which started at the beginning of 2021, and still hasn’t seen any changes in Price Action.
We can also witness a declining volume, which is a reflection of decreasing interest on the stock. Prices should clearly Breakout from the Range and must retest it to trend in either direction.
Traders should keep an eye on the Price Action in a weekly timeframe and take decisions only when the market touches the Support and Resistance zones.
Avoid taking any trades in the middle; make sure to maintain proper risk management when trading volatile stocks like Eicher Motors.
