Suzlon Energy Ltd turn around story
### Analysis of Suzlon Energy Ltd. Chart
The chart of Suzlon Energy Ltd. shows a weekly timeframe analysis, with significant points of interest (POI), supply and demand zones, moving averages, and RSI indicators.
#### Key Observations:
1. **Historical Context**:
- The stock experienced a significant downtrend from the highs of 2009 around 96.39.
- It reached a low of 1.56 and has shown a recent uptrend.
2. **Current Trend**:
- The recent price action indicates a strong bullish trend, with the price currently around 53.05.
3. **Support and Resistance Levels**:
- **Supply Zones**:
- Around 84.23-97.02: Significant historical resistance.
- **Demand Zones**:
- Around 1.56: Historical low support.
- Other intermediate demand zones have formed around lower levels where price action showed consolidation before the recent uptrend.
4. **Moving Averages**:
- The price is above both the 50-week and 200-week moving averages, indicating a strong bullish momentum.
5. **RSI (Relative Strength Index)**:
- The RSI is currently in the bullish zone but approaching overbought levels. Historically, RSI above 70 has led to bearish corrections.
### Strategy Recommendations
#### **Buy Zones**:
1. **Pullback to Demand Zone**:
- If the price pulls back to the recent demand zone around 42.70-52.84, it can be considered a buying opportunity. This is supported by the previous consolidation and breakout, making it a strong support area.
2. **Breakout Retest**:
- If the price breaks above the next resistance around 84.23 and retests it successfully, this would confirm a continuation of the bullish trend and provide a buying opportunity.
#### **Sell Zones**:
1. **Supply Zone**:
- Around 84.23-97.02: This is a significant resistance area from historical data. Taking profits around this zone is advisable unless there's a strong breakout with high volume.
2. **Overbought RSI**:
- If RSI reaches above 70 and starts showing bearish divergence, it indicates potential short-term overbought conditions. This can be a signal to take profits or partially exit positions.
### Conclusion
- **Buy** on pullbacks to 42.70-52.84 or on a successful breakout and retest above 84.23.
- **Sell** near the supply zone of 84.23-97.02 or if RSI indicates overbought conditions with bearish divergence.
Always ensure to use stop-loss orders to manage risks effectively. A stop-loss below the recent demand zone (around 40-42) can help mitigate losses if the trend reverses.
The chart of Suzlon Energy Ltd. shows a weekly timeframe analysis, with significant points of interest (POI), supply and demand zones, moving averages, and RSI indicators.
#### Key Observations:
1. **Historical Context**:
- The stock experienced a significant downtrend from the highs of 2009 around 96.39.
- It reached a low of 1.56 and has shown a recent uptrend.
2. **Current Trend**:
- The recent price action indicates a strong bullish trend, with the price currently around 53.05.
3. **Support and Resistance Levels**:
- **Supply Zones**:
- Around 84.23-97.02: Significant historical resistance.
- **Demand Zones**:
- Around 1.56: Historical low support.
- Other intermediate demand zones have formed around lower levels where price action showed consolidation before the recent uptrend.
4. **Moving Averages**:
- The price is above both the 50-week and 200-week moving averages, indicating a strong bullish momentum.
5. **RSI (Relative Strength Index)**:
- The RSI is currently in the bullish zone but approaching overbought levels. Historically, RSI above 70 has led to bearish corrections.
### Strategy Recommendations
#### **Buy Zones**:
1. **Pullback to Demand Zone**:
- If the price pulls back to the recent demand zone around 42.70-52.84, it can be considered a buying opportunity. This is supported by the previous consolidation and breakout, making it a strong support area.
2. **Breakout Retest**:
- If the price breaks above the next resistance around 84.23 and retests it successfully, this would confirm a continuation of the bullish trend and provide a buying opportunity.
#### **Sell Zones**:
1. **Supply Zone**:
- Around 84.23-97.02: This is a significant resistance area from historical data. Taking profits around this zone is advisable unless there's a strong breakout with high volume.
2. **Overbought RSI**:
- If RSI reaches above 70 and starts showing bearish divergence, it indicates potential short-term overbought conditions. This can be a signal to take profits or partially exit positions.
### Conclusion
- **Buy** on pullbacks to 42.70-52.84 or on a successful breakout and retest above 84.23.
- **Sell** near the supply zone of 84.23-97.02 or if RSI indicates overbought conditions with bearish divergence.
Always ensure to use stop-loss orders to manage risks effectively. A stop-loss below the recent demand zone (around 40-42) can help mitigate losses if the trend reverses.
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