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 :-
  • 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.


Breakout today!!!
+5 Reply
psshri AmeyKajarekar
@AmeyKajarekar should we book profit or keep trailing or do nothing
yeah same question
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