JSW Energy surged over 3 per cent on Wednesday conclusively breaching a key long-term resistance band between ₹80 and ₹82. This breakthrough gives investors with a short-term perspective a fresh opportunity to buy the stock. Since bottoming out from an all-time low of ₹33 in early August 2013, the stock has been on an intermediate-term uptrend. The stock found support at ₹70 in late June this year and resumed its short-term uptrend. The stock has gained 9 per cent this week, emphatically breaching the long-term resistance zone of ₹80 and ₹82. The indicators on the daily chart have entered the positive terrain implying upward momentum. The daily moving average convergence divergence indicator has signalled a buy and is featuring in the positive territory.
The short-term outlook is bullish for JSW Energy. It has the potential to reach the price target of ₹88.5 and ₹90.5 in the approaching trading sessions. Buy the stock with a stop-loss at ₹83.3.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)