SW Solar: Will the counter boil up with solar energy?

 Friends, herein I share my view on SW Solar with different timeframes. 

Weekly chart with pattern:

Company’s share got listed on the exchanges during the mid of August 2019 and entered downward trajectory since then till end of March 2020. During the mid of November 2019, the counter even witnessed gap down opening, creating extreme supply zone. 

After making the final bottom during March 2020, counter entered sideways consolidation of almost 22 months (94 weekly bars), creating curve (cup and handle formation) which helped in identifying the breakout zone. During the first week of September 2021, price showed the first breakout of consolidation with sizable volume. Price decisively remained above breakout since then, confirming trend reversal. 

Breakout of 350 zone had 2 confirmations, first being breakout of 22 months’ consolidation and second being gap down resistance of November 2019. 

After confirmed breakout, price is holding up well above gap zone. Though there is been recent decline, but the strength is clearly missing and that too without volumes. 

Weekly chart with volume activity:

Within consolidation, every uptick had positive higher volumes compared to sideways / down tick. Also point to note is, every uptick volume is higher than previously recorded volume of the bounce, which confirms accumulation by strong hands. 

Weekly chart with Ichimoku & Volume:

During end of June 2021, for the very first time since listing, price decisively crossed Ichimoku cloud and all 5 indicators of Ichimoku confirmed buy. The breakout was with the second highest volume so far. Price is also holding up well above Kijun Sen since then, confirming the trend being intact. 

Daily chart with pattern & retracement:

Compared to the last advance from the zone of 220 to almost above 500, the recent correction of price till 377 is showing retracement of 38.2%. Fibonacci defines this as healthy correction during ongoing rally. The price consolidation (correction) is showing falling wedge kind of formation with lower volumes, breakout of the same will be confirmed above 410 (highlighted with horizontal blue line). 

 

Putting it all together:

Looking at weekly chart formation, with volume activity, along with Ichimoku indicator and daily chart formation confirms strong positive trend. One can keep the stock on radar for new breakout as highlighted. 

 

Cheers,
Kunal

Twitter Handle: @RambhiaKunal, Youtube channel: "KunalRambhia"

KRFA contact details:  (+91) 7045968847

 

Statutory Disclosure:

Kindly note that this update is only for educational purpose. It is safe to assume that my personal position, my fund's position, and my client's, as well as relative's position, may be open in the counter. Prefer to take the advice of your financial advisor before initiating any position.