Chemcon speciality chemicals is about to breakout the channel?
Chemcon is consolidated between a price range, which forms a channel pattern.
Upper line is Resistance line and lower line is Support line
You can see many times the support & resistance tested as well.
In such patterns we can take positional entry at the breakout point. How to calculate the target?
I have marked resistance and support points namely A & B respectively. So the difference between them will give us target after breakout.
Target points = A - B = 467.70 - 400.10
Target points = 67.60
Adding this to point at resistance line that is 467.70 we will get
Target Price = 467.70 + 67.60
Target Price = 535.30
Roughly we get the Target price of Rs . 535.30 which is close to the price from previous resistance.
So this is how the channel breakout pattern works.
Time to achieve the Target : 1-2 Months
Positive signs for breakout :-
If stock fails to breakout, it will take support around 432.
What is your opinion on this? Drop into comment section.
Disclaimer : This is my personal analysis about Chemcon . Do your own analysis before taking any position. I am not responsible for any profit or loss.
Upper line is Resistance line and lower line is Support line
You can see many times the support & resistance tested as well.
In such patterns we can take positional entry at the breakout point. How to calculate the target?
I have marked resistance and support points namely A & B respectively. So the difference between them will give us target after breakout.
Target points = A - B = 467.70 - 400.10
Target points = 67.60
Adding this to point at resistance line that is 467.70 we will get
Target Price = 467.70 + 67.60
Target Price = 535.30
Roughly we get the Target price of Rs . 535.30 which is close to the price from previous resistance.
So this is how the channel breakout pattern works.
Time to achieve the Target : 1-2 Months
Positive signs for breakout :-
- Stock has bullish momentum
- RSI is above 60
- MACD is about to give Buying signal
- 20,50 & 100 SMA crossover
If stock fails to breakout, it will take support around 432.
What is your opinion on this? Drop into comment section.
Disclaimer : This is my personal analysis about Chemcon . Do your own analysis before taking any position. I am not responsible for any profit or loss.