Amber Enterprises (NSE:AMBER) (BSE:540902) is a small cap stock with MCAP of 15,364 crores and operates in the consumer durable sector. The company manufactures heating, motors and ventilation equipment which are used in Air conditions.
Share price of Amber closed 4.05% higher today (29 August) at ₹4556.80 and is now trading near an all time high zone. The stock has outperformed flagship index Nifty in both one week and month.
| Period | AMBER's Returns | Nifty's Returns |
|---|---|---|
| Daily | 4.05% | 0.40% |
| Weekly | 9.02% | 1.54% |
| Monthly | 4.81% | 1.19% |
The stock is up nearly 75% from its 52 week low of ₹ 4,880. Fundamentally, the stock is on higher side of valuation, with weak financials and negative profit growth. However, technical data shows another picuture. The stock can generate 7 to 10 percent of returns* for traders in short to medium terms.
Amber Enterprises 52 Week Price Range
Also check – Amber Enterprises Daily stock Analysis
Technical Chart of Amber
Amber, with the formation of a Bullish Flag pattern has broken from the resistance, supported by increased volume. Shares of this company is now heading towards previous resistance zone of 4600.
The chart also shows a key support level at 4000, which could provide stability in case of any retracements. Given the recent bullish trend and the break above critical resistance, investors might expect Amber to maintain its upward trajectory if it consistently holds above these newly established support zones.
This support also happens to be near 50% fibonacci level. In an uptrend, when a stock retraces upto 50% fib, and continues further upward momentum, it’s a sign of a healthy up trend.
How to trade Amber for swing?
- Entry 1 – Entering long (buying) at current price of 4560 with Target of 4930 and stop loss of 4330. This approach which aggressive traders follow, involves entering the stock without waiting for a retracement, is riskier but can prevent missing out on potential momentum.
- Entry 2 – Buy Amber Enterprises near 4400 on retracement, with stop loss of 4150 and target of 4750. This is safer but investors can miss out on move if the stock does not retrace.
Technical Strengths
- Amber is making Higher Highs from last 3 days
- Stock above upper Bollinger band
- RSI showing strength
- Formation of White Marubozu Candle
While the stock holds potential for some upside in short term, its financials are underperforming. Long term investors should keep tracing improvements in the company’s fundamentals.
*Returns – mentioned are hypothetical and do not guarantee actual gains, as they are based on potential outcomes derived from technical analysis. Traders are encouraged to learn how to use technical tools for making informed entry and exit decisions, rather than relying solely on the information provided. The entries mentioned are for informational purposes only and do not constitute financial advice.
