Bull flag formation and Breakout in Suzlon Energy
Suzlon Energy has been in the news recently due the well performing Energy and Power sector. This stock offered promising Technical Indicators.
There was good trend formation of Higher highs and lower lows, which is an uptrend. This started from the beginning of May, from when even the volume has been higher than the average of the last 6 months. The rally was kickstarted by a Bullish Marubozu candle and then there was a drop in prices. At the start of June, the bull flag set up started with price moving 5.75 to 7.61 and then it consolidated at 7.50 to completely establish the Bullish flag pattern. For an 18 day swing position this is a good move.
SUZLON
Following the range in which the stock is trading, its expected that the stock will fall before rallying further.
(This is just a post market analysis and not any stock recommendation)
There was good trend formation of Higher highs and lower lows, which is an uptrend. This started from the beginning of May, from when even the volume has been higher than the average of the last 6 months. The rally was kickstarted by a Bullish Marubozu candle and then there was a drop in prices. At the start of June, the bull flag set up started with price moving 5.75 to 7.61 and then it consolidated at 7.50 to completely establish the Bullish flag pattern. For an 18 day swing position this is a good move.
SUZLON
Following the range in which the stock is trading, its expected that the stock will fall before rallying further.
(This is just a post market analysis and not any stock recommendation)
Comment:
Just as we pointed out, the stock's price fell to 7.15 after the previous high of 8.50. It then rallied all the way to 9.20, establishing the higher high for the 4th time and then it fell sharply with a strong volume breakout. The price has been falling to reach 5.80, which is the starting point of the bull flag, almost 2 months back.