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Babcock and wilcox Enterprises stock price analysis

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  • Bakcock and wilcox has been a highly range bound stock for 5 months now.
  • Generating a negative 30% return for its investors, the stock has highly disappointed the stakeholders over time
  • The stock has been trading constantly between 5.5$ and 6.8$ from march now.

Babcock & Wilcox is an American energy technology and service provider that is active and has operations in many international markets across the globe with its headquarters in Akron, Ohio, USA. Financially, the company looks strong as it has a increased revenue from past 6 quarters making it a big positive for its stock. 

Babcock and wilcox Enterprises stock price analysis

Technical Analysis for the stock-

On a large time frome like a daily chart, we see a long term bearish movement for the stock which began in November 2021 and the stock has yet not recovered to those levels. November 2022 saw a huge dip but as followed by instant buying from the strong support of 4.30$. 

The stock has been trading in a very strong zone and has not tried to breach it even once. Volumes do not look so good as of now so a big breakout might be a little far away. 6.84$ has been acting as a very strong resistance so that is the first and most important level for the stock if an upside is seen. 

5.5$ has acted as a strong support for almost 4 times now and therefore the chances of the stock going below that level become very low. 

Babcock and wilcox Enterprises stock price analysis

On a smaller 1 hour time frame, we see a few big candles emerging recently which some beginning of some buying momentum in the stock. 5.61$ has been a soft resistance since a few days now. If we see the stock crossing these levels with good volumes, then it can be good prices to enter with a bigger target of 6.5$ which would be the next target.

Next 1 week will show us the future for the stock depending upon the amount of buyers that enter the emerging momentum in the stock.

Indicators including 50 EMA and moving averages predict a possible upside for the stock which is a positive as the stock technically looks strong. 

Analysts on the internet predict the future price for the stock to be 8.8$ in the upcoming one year which is almost a 58% upside for the stock.

The biggest challenge for the stock currently is to breach the zone it has been in since March. Next 1 month becomes highly crucial for the stock as there is a new momentum that has been building up in the stock. Traders should keep a close eye so as to catch a big buying momentum if it arises.

Conclusion 

The stock has been bearish for a very long time now but it has started to look strong since a few days now and we can see a good upside in the upcoming months. Confirmation must be awaited before taking a position any side. Next 1 year looks good with a possible upside of more than 50%. 

Important technical levels 

 Major support levels- 5.2$ followed by 5.05$.

Major resistance levels- 5.61$ followed by 6.5$. 

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