Traders are bullish on Adani Green; here’s why
ADANIGREEN has soared over 7% in Friday’s trading session.
The stock of Adani Green Energy is one of the buzzing stocks today, having surged over 7% during the initial hours of Friday’s trading session. Despite the Indian indices consolidating for some time now, this Adani-group stock has jumped about 13% in just 4 trading sessions. With this, it has broken out from its triangle pattern with huge volume. The daily volume is found to be greater than the 10-day, and 30-day average volume.
Interestingly, it has seen strong buying interest after the breakout as evident from higher volumes. Moreover, the stock is now above its 50% retracement level of its prior downtrend. Such positivity has attracted the market participants and long positions are created with an expectation of the stock surging higher.
Apart from its bullish price structure, the technical parameters show strong strength in the stock. The 14-period daily RSI (72.50) is in the super bullish territory and above its prior swing high. The ADX is pointing upwards and shows good momentum of the stock. The MACD has also indicated a bullish crossover. The OBV is improving and shows building interest among the market participants. The Elder Impulse system has charted bullish bars and shows strong buying interest in the stock. The Relative Strength (RS) is in the positive zone and shows relative outperformance against the broader market. The stock is above all its key moving averages and all the MAs are in uptrend.
This year, the stock has jumped over 85% and one-month performance stands at 16%. Considering the above points, we expect the stock to trade higher in upcoming trading sessions. The target levels are likely placed at Rs 2550, followed by Rs 2700 in the short to medium term. One can place a stoploss at the 20-DMA level of Rs 2190. It provides good trading opportunities and is likely to be among the traders’ favourite for times to come.
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