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Technical Observations

* The stock after the last one months corrective decline is seen rebounding taking support at the 61.8% retracement of June – August up move and 50 day EMA thus offers fresh entry opportunity

* We expect stock to resolve higher and head towards | 445 levels as it is the 80% retracement of its recent decline (|460—386)

* Over past six weeks the stock has retraced 61.8% of its previous 6 weeks up move (|356-458). A slower pace of retracement highlights robust price structure that augurs well for next leg of up move

* The stock has immediate support at | 398 levels being the 50 days EMA where the stock has been forming higher base around the last few sessions

* The daily 14 periods RSI has generated a buy signal moving above its nine periods average thus validates positive bias

Buy Sumitomo Chemical Ltd @ 409.00-417.00 TGT 445 SL 398

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