REC Limited

• 28 May, 2024 Ruchit Thakur

REC Limited

REC Limited is prepared for a fresh upward trend and is ready for the next leg of the move.

REC Limited has a fantastic opportunity to enter at the current market price with a high target on upside.

Please see the daily chart of REC Limited. The stock is trading close above the horizontal channel, having recently broken above the last swing high of 565-570. The potential upside lies between 600 to 640, which is a rectangle pattern target. 

• REC Limited is a great long-term investment opportunity because it has broken free from rectangle boundaries and is moving upward.
• REC Limited experiences excellent demand between 560-570, and fresh upside is accessible above the 572-575 zone.
• At the current market price, the risk-to-reward ratio is ideal for starting a long-term investment.

Please see the attached REC Limited chart for reference. The REC Limited daily chart shows a rectangle pattern breakout, with support in the 560-565 range. The breakout will occur above the 572-575 zone, and it may move to the 640 and 650 zones, respectively. On the downside, keep adding the stock on dips until it reaches the 540-550 zone.

Please take a look at the chart's rectangle pattern, which has been consolidating since the first week of May and is now creating a breakout. So far, the stock has followed the rectangle and has now broken out of the 570 zone. One can look for a long opportunity in the current zone because the stock is seeing demand between 560-570 and the stop loss is around 520, so the risk-reward ratio is good for this opportunity.

Rectangle Pattern: A rectangle is a pattern found on price charts. A rectangle is produced when the price repeatedly approaches the same horizontal support and resistance levels. The price is limited to shifting between two horizontal levels, resulting in a rectangle.

Traders and investors may enter futures June contracts or even the spot market at the current market price with a stop loss around 520 to achieve price goals of 640 and 650.

Take a look at REC Limited support and resistance levels on the daily chart. All levels are in the spot chart. 

Company Profile: REC Limited, previously Rural Electrification Corporation Limited, whose holding company, Power Finance Corporation (PFC), is owned by the Ministry of Power, Government of India. It funds and supports power projects throughout India.