- Summary:
- IREDA share price has been trading downward since mid-July, yet remains 119 percent in profit year-to-date. Does that pose a risk?
India Renewable Energy Development Agency (IREDA) share price losing streak came to a halt on Thursday, rising marginally by 0.3 percent. The stock had declined in the previous three successive trading sessions, losing -3.9 percent of its value in the process. IREDA traded at Rs 224.19 at the time of writing, having recovered from an eleven-week low price of Rs 217.
The momentum on IREDA share price is currently bearish-leaning as it trades below the 20-EMA and 50-EMA. Furthermore, the 20-EMA has made a bearish crossing below the 50-EMA, adding support to the bearish narrative. That said, IREDA (NSE: IREDA) is still in profit this year, with year-to-date gains of 119%. Also, it has risen by 348% in the last 52 weeks.
IREDA daily chart showing a bearish crossing of the 20-EMA below the 50-EMA
IREDA share price has been on a general downward trajectory since mid-July and that could increase the pressure to take profit for investors who bought the stock earlier in the year. However, its fundamentals remain strong, going by the June quarterly report in which it saw its revenue grow by 32% and its net profit rise by 30.2% YoY to Rs 3.83 billion.
IREDA share price forecast today
The 30-minute IREDA share price chart calls for further upside going by the Moving Average Convergence Divergence (MACD) line which is above the signal line. The upside will likely continue if the price action stays above the pivot mark at 223.35. With the buyers in control, the first resistance will likely be at 227.15.
However, if the momentum continues to strengthen, the price could break above that mark and test 230.30. On the other hand, a move below 223.35 will favour the sellers, with the first support likely to be at 220.50. However, extended control by the sellers could breach that level, invalidate the upside narrative and test 217.05.
