5110 Technical Analysis: Bullish Setup in Play5110 (Saudi Electricity Co.)
Price is trading above the 55 Fib EMA on the daily timeframe, a level it has historically respected as dynamic support and resistance. It is also trading above a rising trendline and has broken out from a long-term falling trendline, moving now within an ascending channel. Recently, price gave a strong close above a key horizontal support zone, reinforcing the bullish structure. RSI is also in sync with the setup.
On the fundamental side, the stock has shown positive growth in revenue, gross profit, operating income, net income, and EPS over past quarters, supporting the bullish technical outlook.
Buy 2 is positioned lower in case of a healthy pullback for a stronger average. TP1 and TP2 are aligned with near-term resistances, while sustained momentum beyond TP1 opens room for price to extend toward 18.5, 21, and 24. Stop loss is set below 14.00 on a closing basis to define risk.
Recommended Levels:
Buy 1: 15.61 (CMP)
Buy 2: 14.80
Stop Loss: Closing below 14.00
Take Profit 1: 16.50
Take Profit 2: 18.50
Take Profit 3: Ride the trend with a trailing stop
Potential upside remains as long as price sustains above the rising trendline, and 55 Fib EMA. Happy trading!
