Is It the Right Time to Enter Ceres Power Holdings?

• The CWR stock has been highly volatile for the past 1 month with both the buying and selling sides being pretty active.
• The stock reached a high of £4.4 in July but has been highly inconsistent since.
• £3.07 looks like strong support as the stock saw a huge buying at those levels.

Ceres Power Holding plc engages in the development and commercialization of fuel cell technology. It offers products under the Steel Cell brand. The company was founded in May 2001. Its headquarters are located in Horsham, the United Kingdom.

Financially, the numbers don’t look too big. However, the company has been highly consistent in terms of revenue per year. The profit has been negative constantly for the past 4 years. It became a big negative for the stock and the investors.

Technical analysis for the stock

The stock has been highly volatile throughout the year. It has been stuck in a zone since March. £3.07 to £3.75 levels have become a strong range for the stock. A big move may only occur if the stock breaches those levels on either side.

The stock recently touched its support at £3.07£ and saw a highly strong buying from there. It indicates demand in that zone. The stock currently trades pretty close to a major resistance at £3.75. Current volumes look good and we can see the stock breaching this level in the upcoming days. 

A good buy entry can be made if the stock crosses £4.1 levels with similar volumes to the current ones. 

A downside move from the current levels looks less likely. However, we have seen the stock getting rejected from £3.75. If that happens, £3.07 will be the first support followed by £2.77. 

An hourly chart shows us a clearer picture of the current setup. The stock can face rejection from levels near £3.73. That level has acted as a strong supply zone in the past. At this point, one must wait for a few days to see how the stock reacts to the current levels. The stock may go down to 3.45£ which is a local support If that rejection continues. 

A good move may occur only if the stock branches the current resistance. It would be advised for anyone to not make a move as the stock is in a crucial zone. A move may take place on either side. 

Another big positive for the stock is that analysts are predicting the stock to breach £7 levels in the next year. One can look forward to entering if the stock comfortably crosses 4.10£ levels in the upcoming months. 

Conclusion:

The stock looks strong as of now and can prove to be a good buy. However, you must wait and watch the price movement for at least a few weeks before making a move. A good upside is possible in the coming months and if entered at the right levels, it can turn out to be a great pick.

Important technical levels:

• Major support levels: 3.45£ followed by 3.07£.
• Major resistance levels: 3.75£ followed by 4.10£.