Shares of Dixon Technologies have been displaying strength over the past few months and hit a new all-time high of Rs 19,148.90 in December 2024, from where the stock started to retrace.On the daily chart, the stock is currently trading around Rs 16,919 and has fallen by nearly 6% in the last 2 weeks.However, the stock has shown a rebound from its recent support level near Rs 15,953. The resistance zone is observed near Rs 17,295.It is trading below its 20-day and 50-day EMAs (Rs 17,391 and Rs 15,869, respectively), indicating short-term weakness, though it remains above its 100-day EMA at Rs 14,417, which hints at the underlying medium-term support.While the longer-term uptrend remains intact, with the stock trading above its 100-day (Rs 15,369) and 200-day (Rs 12,752) moving averages, the recent price action suggests a potential consolidation phase.“Dixon has experienced a decline, slipping below its short-term moving average, the 20 DEMA, which has disrupted its momentum. However, the broader uptrend remains intact. The stock is likely to consolidate within the 15,400-17,300 range, with a decisive breakout determining the next directional move,” said Ajit Mishra, SVP of Research at Religare Broking.He said a positive outlook should be maintained as long as the stock holds above the lower boundary of this range. Also read: Macquarie bullish on QSR sector; initiates coverage on 2 stocks“In the event of a breakout, Dixon could potentially retest the 18,400-19,000 zone,” Mishra added.Further, the RSI of the stock stands at 62.83, reflecting bullish momentum but nearing overbought levels. This signals a cautious approach as profit-booking may emerge near resistance.The stock has exhibited a bullish reversal pattern on the daily chart around the Rs 15,900 zone. “This level (Rs 15,900) previously acted as a breakout point in the last quarter, reinforcing its significance. A short-term bullish engulfing pattern has formed at the same level, signalling a positive outlook,” said Ganesh Dongre, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.With this, Dongre advised traders to buy the stock with a stop-loss of Rs 15,500 and target a price of Rs 17,500.On Wednesday, Dixon Technologies shares closed 4% higher at Rs 16,930.30 on the BSE.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)