The SWSOLAR share price has seen strong momentum in 2023, rallying over 60% year-to-date. As per our analysis, the stock has recently provided a solid technical breakout above the key ₹420 level, indicating inherent strength.
Here’s a closer look at the positive technical setup of SWSOLAR shares along with analysts’ views and outlook.
SWSOLAR Share Price Hits New Highs in 2023
The SWSOLAR share price has been on an uptrend so far in 2023. Starting the year at ₹270 levels, the stock has managed to surge over 60% year-to-date to hit fresh all-time highs near ₹440 in recent trading sessions.
A combination of strong quarterly numbers and positive management commentary seems to be aiding bullish sentiment around the SWSOLAR counter.
SWSOLAR Breaks Out Above Crucial ₹420 Levels
More recently, SWSOLAR stock provided a solid technical breakout above the psychologically important ₹420 levels on the daily chart. This sharp breakout above the ₹420 barrier indicates improving market confidence and buying participation in the stock.
Notably, prior to this recent price activity, the ₹420 zone had acted as a sturdy wall for the SWSOLAR stock price on multiple occasions over the past year. However, last week’s forceful move above this hurdle signals elevated investor interest.
SWSOLAR Shares Trading Above Key EMAs
Adding to the positive setup, SWSOLAR stock is presently trading comfortably above all its key exponential moving averages such as the 20-day EMA, 50-day EMA as well as the long-term 200-day EMA on the daily timeframe.
The placement of price above these crucial short-term and long-term EMAs underscores bulls’ absolute control over the counter at the moment. Traders see further upside potential as long as SWSOLAR sustains above these EMA levels which are currently seen near ₹410, ₹380 and ₹350 levels respectively.
RSI Cools Off to Reaffirm Uptrend Strength
The 14-period Relative Strength Index (RSI), a well-known momentum indicator, also seems to be backing the bullish bias. The RSI recently cooled off from the overbought zone to reset excessive conditions before resuming the uptrend.
The indicator is presently seen retesting the 70 mark on the daily scale. Traders view this as a sign of strength as it rules out overheated conditions in the stock for now. Hence, any minor dip towards the 20-day EMA line could be seen as a new buying opportunity by analysts.
Resistance Zone at ₹452; Breakout Could Trigger Rally to ₹475
On the higher end, SWSOLAR share is likely to face some minor resistance around ₹452 levels as per chartists. A successful clearance of this barrier could then accelerate buying momentum and open the gates for a rally towards ₹475 in the coming weeks.
On the flip side, as long as the counter sustains above the recent breakout point of ₹420, the path of least resistance remains skewed to the upside. But a breach of this support could lead to some temporary profit booking by traders.
Analysts Advise Buying SWSOLAR at Current Levels
Aggregating the optimistic technical setup and bullish moving averages crossover, analysts advise buying SWSOLAR shares around current levels for a target of ₹475.
As per technical chart targets, the risk-reward ratio looks quite favourable to take fresh long positions at the moment. Investors could look to buy around CMP of ₹440 for the said target level.
A strict stop loss can be placed below the ₹420 support on a closing basis to protect capital, as per analysts. In conclusion, the positive technical outlook supported by strong fundamentals indicates further upside in the SWSOLAR counter.