- Suzlon Energy has just packed a contract to build two 50 MW wind farms but it did not prevent its stock from sliding. What's behind the rejection?
Suzlon Energy's Sharing Price continues to exchange down, with momentum threatening to break the support of Rs 50. The likely continuation of the downward action stock is aggravated by the development of a bearish double-top pattern with the neckline line close to the Rs 50 mark on the daily chart.
The relative index index (RSI) in stock is at 39 as of this writing price below 20, 50 and 100-day average transfer levels (EMA) to confirm bearish existing control. In addition, bollinger bands expand, signing an increase in volatility. This set up raises Suzlon's energy sharing price below the psychological support of Rs 50.
On a positive note, the company has just announced that it has won a contract to build two 50 MW air plants for state-owned Bharat Petroleum Corporation Limited (BPCL). The contract is an important addition to Suzlon Energy's Strong Order Book and the two wind farms are set to be completed within two years.
However, the company's stock is likely to continue trading downhill as the broader sentiment in the market remains bearish. Energy stocks are generally under pressure as investors take revenue and spending on mega -changing energy projects slowing down. The lower band of Bollinger on Suzlon's sharing price is 50.53 in the sun -day chart, and the destruction below that level will boost the downward momentum.
Forecasting Suzlon Energy Sharing Price
The momentum in Suzlon Energy Share price signals that the downside is likely to prevail as resistance to Rs 53.00 continues. That is likely to see the first support to come to Rs 52.30. An extended control of the sellers is less action, with a second support that is likely to be established at Rs 51.80.
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On the other hand, destroying above Rs 53.00 will invite consumers to control. In that case, the action may be higher and the first barrier to Rs 53.50. However, a stronger upward push is violating that mark and the downside narrative is not valid. In addition, the resulting momentum can send a stock price higher to test Rs 54.10.
