Mar 13 2024, 07:48
Stock Radar: Breakout from inverted Head & Shoulder pattern makes this speciality chemical stock:
The stock hit a record high of Rs 2,961 on 7th March 2024 but failed to hold the momentum. It witnessed mild profit taking but the trend is largely on the upside. The speciality chemical stock gave a breakout from a falling trendline resistance on the upside as well as from an inverted Head & Shoulder pattern. The neckline of the pattern was placed around 2,800 levels. The stock closed at Rs 2.865 on 7th March 2024.
Pidilite Industries, a part of the speciality chemical space, gave a breakout from an inverted Head & Shoulder pattern last week and has also given a breakout from a falling trendline resistance on the weekly charts.
Short-term traders can look to buy the stock now for a possible target above 3,000-3,100 levels in 2 months, suggested experts.
The stock hit a record high of Rs 2,961 on 7th March 2024 but failed to hold the momentum. It witnessed mild profit taking but the trend is largely on the upside.
Pidilite Industries is a market leader in adhesive, industrial and construction chemicals, and art materials, the company website showed.
"Last week, Pidilite Industries stock marked its 52-week high above 2,800 as the bullish momentum continued for the fourth consecutive week for the stock," said Shitij Gandhi, senior technical analyst of SMC Global Securities.
"In recent past stock has already given a fresh breakout above the long-term bearish channel, which was observed on weekly charts," he said.
In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts.
"At the current juncture, the stock has once again shown signs of recovery and has formed an Inverted Head & Shoulder pattern on weekly intervals," highlighted Gandhi.
source:et
Mar 13 2024, 07:54