Swelect Energy Systems registers breakout; shares surges 17%

Swelect Energy Systems Ltd experienced a significant surge of around 17% in today’s trading session, propelled by a breakout as it closed above the important level of Rs 380 on the daily chart. 

Swelect Energy Systems Ltd, incorporated in 1994, is actively engaged in manufacturing and trading solar power projects and off-grid solar photovoltaic modules based on crystalline silicon technology (c-Si). The company also operates in solar and wind power generation, contract manufacturing services, installation and maintenance services, as well as the sale of solar photovoltaic inverters and energy-efficient lighting systems. It was founded by Ramasamy Gounder Chellappan on September 12, 1994, with its headquarters located in Chennai, India. 

From a technical perspective, an analysis of the daily chart reveals an impressive surge of over 700% from the stock’s lows on March 25, 2020. Currently, Swelect Energy Systems is consolidating within a broad range, with the upper boundary around Rs 468 and the lower boundary resting at Rs 263.45 since midweek of April 27, 2022. Notably, the lower boundary of the consolidation range perfectly aligns with the 50% retracement support level of the previous significant rally depicted on the daily chart. 

By drawing a line from the high on June 03, 2022 (Rs 390.95) to April 25, 2023 (Rs 380.90), we can identify the breakout trendline of the trend reversal price pattern known as the “Inverted Head and Shoulder.” 

Today, Swelect Energy Systems successfully registered the breakout by closing above the important level of Rs 380, leading to a substantial surge of around 17% in a single trading session. This breakout rally was supported by robust trading volumes, surpassing the average volumes of the past 100 days. Based on this pattern, the stock’s minimum target is estimated to be approximately Rs 515, indicating a potential increase of over 35% from the breakout level.

Considering all these factors, the chart analysis confirms a strong bullish sentiment, highlighting an enticing buying opportunity that demands careful attention in the upcoming sessions.