CHEMCON SPECIAL CHEM LTD. Double Bottom in progress.
As per the techincal analysis, we are witnessing a Double Bottom pattern formation on a Weekly time frame. The stock has shown huge demand around 261 levels. The stock is approaching towards a strong resistance region which is between 342-347 levels. A rejection is most likely to be seen around this region as 50 EMA and the neckline is coinciding making it a stronger resistance.
One may enter into the stock between 347-350 levels and expect the upward movement upto the levels of 390 and 424 indicating a return of 10%-20% approximately. An ideal stop loss can be considered around the levels of 295.
As per the fundamentals, the company is almost debt free and is expected to provide decent figures in the upcoming quarter. Also, the stock is currently undervalued with EPS rising steadily. Hence, long term investors can also consider adding this stock to their portfolio.
Note:
1. One must keep a check on the volume when the stock breaches it's resistance.
2. The analysis is done on a weekly time frame, hence it might take a couple of weeks to achive the target.
The above analysis is purely for educational purpose. Investors/Traders are advised to do their research before entering into any position.
One may enter into the stock between 347-350 levels and expect the upward movement upto the levels of 390 and 424 indicating a return of 10%-20% approximately. An ideal stop loss can be considered around the levels of 295.
As per the fundamentals, the company is almost debt free and is expected to provide decent figures in the upcoming quarter. Also, the stock is currently undervalued with EPS rising steadily. Hence, long term investors can also consider adding this stock to their portfolio.
Note:
1. One must keep a check on the volume when the stock breaches it's resistance.
2. The analysis is done on a weekly time frame, hence it might take a couple of weeks to achive the target.
The above analysis is purely for educational purpose. Investors/Traders are advised to do their research before entering into any position.