Premier Energies Shares At Critical Zone: Breakout Or Breakdown Ahead?

Despite winning a $20 million West Africa solar contract, Premier Energies has remained range-bound.

Premier Energies shares rose 2% on Friday, and its technical charts suggest a significant breakout is likely in the near term. Analysts believe that the stock is trading in a critical zone, making a breakout or breakdown likely in the coming sessions. 

Earlier this week, the solar company secured a $20 million contract in West Africa. The order includes rooftop solar systems, solar streetlights, and solar water heaters, strengthening the company’s international presence. However, the stock was subdued in trade despite the contract win. 

Technical Outlook

SEBI-registered analyst Akhilesh Jat noted that Premier Energies has been range-bound between ₹975 and ₹1100 over the past two months, frequently crossing its 50- and 200-day Exponential Moving Average (EMA), suggesting sideways momentum. In the near term, Jat identified ₹950 as a key support level, while ₹1,165 may serve as a crucial resistance level for the stock.

Manish Kushwaha also flagged that the stock has been consolidating within a symmetrical triangle, characterized by lower highs (a downtrend line). However, it was now approaching the apex of the triangle, indicating that a strong breakout or breakdown was imminent. 

According to Kushwaha, if the stock breaks out with significant volume, this symmetrical triangle could signal a powerful continuation of the uptrend. Currently, volume is low, suggesting that traders are awaiting confirmation before taking action. 

He recommended traders to wait for a confirmed breakout above ₹1,050 or a breakdown below ₹980 before entering any new positions. The risk-reward scenario will become favourable once the price breaks out with volume, Kushwaha concluded.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment has been ‘bearish’ for a week on this counter.

Premier Energies’ shares have declined 24% year-to-date (YTD). 

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