IREDA Stock Price Jumps 1.4%; Major Support at Rs 185.75 and Major Resistance at Rs 232.95
The Indian Renewable Energy Development Agency (IREDA) stock exhibits an intriguing performance as it trades near Rs 208.42, backed by its notable 52-week range of Rs 61.50 to Rs 310. This analysis provides actionable insights based on Candlestick Patterns, Fibonacci Levels, and Support and Resistance Levels, offering potential investment strategies for traders.
Candlestick Patterns Analysis
Analyzing the daily candlestick chart reveals the following:
Current Candlestick Formation:
The current candle resembles a Spinning Top, indicating market indecision with modest upward momentum. A small real body and long wicks suggest equilibrium between buyers and sellers.
If the next candlestick closes above the high of Rs 208.42, it may signal bullish momentum.
Recent Trends:
Prior sessions showed Bullish Engulfing Patterns, which marked short-term upward momentum.
Absence of bearish reversal patterns indicates limited selling pressure in the near term.
Actionable Insight: A bullish breakout above Rs 208.50 could signal entry opportunities for short-term traders. However, a break below Rs 204.50 might indicate consolidation or downward pressure.
Fibonacci Retracement Levels
The Fibonacci levels are calculated using the recent 52-week high (Rs 310.00) and low (Rs 61.50).
| Fibonacci Level | Price (Rs) | Implication |
|---|---|---|
| 23.6% | 130.83 | First major support in a downward correction |
| 38.2% | 167.65 | Second key support level |
| 50.0% | 185.75 | Critical mid-level support/resistance |
| 61.8% | 203.85 | Major resistance for further upward movement |
| 76.4% | 232.95 | Resistance level before a potential new high |
Actionable Insight: Current levels near Rs 203.85 align with the 61.8% Fibonacci retracement, suggesting significant resistance. A sustained close above this level could propel prices toward Rs 232.95.
Support and Resistance Levels
Support and resistance zones are derived from historical price action and technical patterns.
Key Levels:
Immediate Support: Rs 204.50 – This aligns with the session's low and acts as the nearest cushion.
Major Support: Rs 185.75 – This level coincides with the 50% Fibonacci retracement and is critical for downside protection.
Immediate Resistance: Rs 208.50 – The current high serves as the first barrier for upward movement.
Major Resistance: Rs 232.95 – A breakout above this level could trigger a rally towards Rs 260-270.
Actionable Insights and Investment Strategies
Short-Term Traders:
Consider entering long positions above Rs 208.50 with a target of Rs 232.95. Use Rs 203.85 as a stop-loss.
For bearish moves, initiate short positions below Rs 204.50, targeting Rs 185.75.
Medium-Term Investors:
Monitor for a breakout above Rs 232.95. Sustained movement could open opportunities to target Rs 260-270.
Accumulate near Rs 185.75 if prices decline, as it represents strong support and a favorable risk-reward zone.
Long-Term Outlook:
With a 52-week high of Rs 310.00, the stock has significant potential for upward recovery if broader market conditions improve.
Favorable government policies and sectoral growth in renewable energy could provide long-term tailwinds.
Bottomline for Traders and Investors
IREDA's stock shows promise for both short-term traders and long-term investors, supported by its technical patterns and Fibonacci retracements. With careful monitoring of key levels like Rs 204.50 and Rs 232.95, traders can capitalize on potential breakout opportunities. However, investors should remain vigilant about macroeconomic factors and sectoral dynamics influencing renewable energy investments.
