Shree Renuka Sugars: early stage uptrend


Company profile: Shree Renuka Sugars Limited is an integrated manufacturing company with a focus on sugar, distillery products and ethanol. The Company also generates power which is used for captive consumption besides being sold externally.  

The uptrend trend is in an early phase. Recent swings are part of a new basing process above the main support 24.40. Holding above this area keep the trend in place and maintain focus on 34.95 (minor projection) and the much more significant zone 42.42<>45.10 thereafter.

  • Primary trend: positive
  • Outlook: early uptrend, buy
  • Support: 27.44 / 24.40 / 22.85-
  • Resistance:  34.95* / 42.42 / 45.10*

Weekly chart Renuka Sugars


11 February 2014

Buyers have some trouble getting things going after the recent trend breach. As long as 19.70<>19.30 holds as support zone, the bias remains to the upside. Existing longs can be held but new buying is best postponed until confirmation occurs above 21.75. Potential to the upside is good; 24.85 and  34.15 are the first levels to watch out for. On a 12-month basis much higher levels (~38) are certainly possible.

Overall, bullish undertone but buyers need to flex their muscles soon.

  • Primary trend: neutral/moderately positive
  • Outlook: positive, buy > 21.75
  • Support: 19.30 / 14.50
  • Resistance:  21.75 / 24.85* / 34.15+

Weekly chart Renuka Sugars

shree renuka sugars_14feb2014

2 September 2014

Todays’ rally fits either a bear-market rally or a potential trend reversal. Taking into consideration other factors of the chart (indicators, Wave counts, basing) it is our expectation that a trend reversal is by far the most likely scenario. Officially the zone 20.85<>22.50 needs to be cleared before a true reversal has taken place. However, with good support nearby and favourable odds of a reversal, some preliminary buying can be done as long as 14.45holds as support.

We understand the psychological barrier of buying a stock that is ~10% up on the day, but keep in mind that such rallies do not occur without reason and come after the horrendous drop of almost 89% since 2011.

  • Primary trend: negative (late stage)
  • Outlook: recovery, possible trend reversal
  • Support: 14.45
  • Resistance: 20.85 / 22.50 / 34.90

Weekly chart Renuka Sugars