Suzlon Energy Share Price: Technical Breakout Suggests Bullish Trend

Suzlon Energy is a company engaged in the renewable energy sector, specialising in wind energy solutions.

Suzlon Energy share price is currently trading at its 52-week high, indicating strong price momentum and investor interest.

Moreover, the recent technical breakout from a long-standing resistance level further reinforces the notion this could be a new beginning for the stock.

The breakout suggests the stock has managed to overcome significant selling pressure and has entered a potentially bullish phase.

This development has attracted attention from traders and investors, who see it as a signal of a possible upward trend in the stock's price.

Technical Breakout

Let's look at Suzlon's weekly chart below and try to understand the possible breakout.

Suzlon Weekly Chart

 

The recent price action witnesses the breakout from a 72-week resistance level indicating a strong bullish momentum and potentially signals a reversal in the stock's long-term downtrend.

The breakout suggests that the stock is seeing significant buying interest, as it has surpassed a key level of historical selling pressure.

Additionally, the stock price is exhibiting a higher high - higher low formation, on the chart. This is a bullish trend pattern as per Dow Theory.

This pattern indicates that each successive high and low in the chart is higher than the previous one. This pattern reflects an increase in demand for the stock.

A word of caution

It's important to note that Suzlon Energy tends to trend strongly only when the broader market is nearing all-time highs.

These stocks are influenced by market sentiment and overall market conditions, particularly in the renewable energy sector.

It's best to monitor the broader market trend, as well as the performance of other stocks in the renewable energy sector.

Also consider fundamental factors, such as the company's financial health and industry outlook. This can provide a comprehensive view for making investment decisions.

At present, Suzlon Energy is trading at Rs 13.32, down over 7% from its previous close of Rs 14.40.

The stock touched its 52-week high price of Rs 14.59 yesterday. It has a 52-week low of Rs 5.4 touched on 27 July 2022.

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