Stock Idea - Southern Petrochemical Industries Corporation Ltd By Choice Broking
Ona monthly chart, Stock has given a breakout of rounding bottom formation at 35.40 level and made a high at 68.45 levels but showed profit booking from a higher level and made a low at 43.10, from there the stock has taken support from the horizontal line and showedbounce back movement.
On a weekly chart, the stock has given a break out of “Pennant Pattern”, which indicates an upside move in the counter.
On a daily chart, the stock has given a breakout falling trendline which points out upsidejourney
Additionally, the price has also moved above the upper leg of “Bollinger Band” whichsuggests a bullish rally will continue further in the near-term.
Furthermore, the stock has been trading above 21*50 Days Moving Averages with a bullishcrossover which shows a positive trend for the time being.
A daily momentum indicator MACD and Stochastic both have shown positive crossoverwhich adds more bullishness to theprice.
Hence, based on the above technical structure, one can initiate a long position in SPIC atCMP 52 or a fall in the price till 50 levels can be used as a buying opportunity for the upsidetarget of 60-68, while the support is placed at around 45 or 42 levels, so a stop loss on closingbasis of 42 should be placed at lower levels.
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