CG Power recovers from day's low, takes support at 50% Fib retracement

CG Power, after hitting life high in February this year, formed a Shooting Star candle pattern on the monthly charts

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26 Aug, 2025 12:21

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CG Power and Industrial Solutions on March 2 was under pressure but showed some recovery in late trade and finally settled with a 2 percent loss. Overall, it has been in a downtrend, especially after hitting a record high of Rs 338.60 on February 14.

The stock fell more than 5 percent intraday, especially in afternoon trade and hit an intraday low of Rs 291, which largely coincides with the 50 percent Fib retracement (Rs 293), the lowest intraday level since January 27 this year.

Generally, the 50 percent Fib retracement works as a support level in normal trades and if it breaks, then there can be a possibility of more correction.

The stock closed 2.2 percent lower at Rs 300 but managed to hold the low of February 28 (Rs 298.8), thanks to a late trade recovery. It has formed a bearish candlestick pattern, which resembles a Bearish Engulfing kind of pattern on the daily charts, which is a negative sign.

Hence, if the stock takes support at around Rs 290 levels, then there could be a rebound but the decisive breach of the same can drag the stock price below 100-day EMA (exponential moving average - Rs 284), experts said.

"The stock has been in a strong uptrend since March 2020 barring a few spells of consolidation. The stock has shown a negative divergence on the daily charts which has resulted in the price correction since last few sessions," Viraj Vyas, Technical Analyst for Institutional Equities at Ashika Stock Broking said.

If we draw a trendline from the lows of June 2022 and December 2022, the stock is approaching a support area (Rs 280 - Rs 285) which is also a polarity support. Continuing to sustain above this level augurs well for the stock and such corrections can stand to be a good opportunity to accumulate the stock, he advised.

CG Power, after hitting life high in February this year, formed a Shooting Star candle pattern on the monthly charts; however, in the current month, the stock breached its previous month's low indicating profit booking has happened at higher levels.

"On the weekly charts, the stock is sustaining below its 5-week low. The stock has immediate support placed at Rs 286 - Rs 272 and on the higher side, it has resistance placed at Rs 320 - Rs 338 levels," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.

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