Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Ceres Power Holdings plc (LON: CWR) today fell 4.86% having hit a major resistance level at the 1490p level and have been unable to break above it since late December 2020, when will they break above 1500p?
A look at the daily price chart shows that shares of the British electric battery company have been rising since its March bottom due to the coronavirus market crash with the shares up 284% over the past year.
However, looking at a longer time frame via the monthly chart, we can see that Ceres Power shares once traded above 4000p back in July 2007, which indicates that the shares can go much higher.
We should keep in mind that Ceres Power last traded at its current price (1366p) in March 2010 before falling and trading sideways from November 2011 to December 2019.
Looking at much longer time frames usually helps us broaden our perspective to get a better picture of a stock we are trading to make better trading decisions aligned with the long-term trends in a particular market or stock.
Considering last year’s massive rally, I wouldn’t be surprised if Ceres Power shares traded sideways for a couple of weeks, or fell further before starting another uptrend that breaks above the crucial 1500p level.
The company’s shares could also break down significantly in the future, invalidating the above conclusion and usher in a new downtrend.
Ceres Power is riding a strong wave of interest in electric vehicles. The company operates with huge margins because it licenses out its technology to other companies instead of manufacturing the actual batteries, which substantially cuts its operating costs.
Ceres Power share price.
.Ceres Power shares fell 4.86% to trade at 1332p having fallen from Friday’s closing price of 1400p.
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