KANSAI NEROLAC : Three n Half year's BO

As the name suggests, resistance is something which stops the price from rising further. The resistance level is a price point on the chart where traders expect maximum supply. The likelihood of the price rising to the resistance level , consolidating, absorbing all the supply, and declining is high. The resistance is one of the critical technical analysis tools which market participants look at in a rising market. The resistance often acts as a trigger to sell. From 01'Jan'2018 to 07'Dec 2020 stock tried 3 times to give BO but somehow bears win by creating selling pressure at price 558.
Since, Jan'2018 stock remains unable to close above this (558) price & this situation confirms that there is "HORIZONTAL RESISTANCE".

"Change in Polarity": The change in polarity principle asserts that once breached, a support level becomes a resistance level . Similarly, resistance levels become support levels once breaching has occurred.
In our case(KANSAI NEROLAC) Previous Resistance (558) worked as SUPPORT after 21 Dec'20 onwards.

Analysis on Daily time frame...
1. Since 19'March'2021 making Higher Lows or Ascending Triangle (indicates BULLISHNESS).
2. Again Horizontal Resistance can be seen (in daily time-frame) from last 4 months(indicates Bullishness).
3. On 2nd July give closes near mid-term MA, again a bullish sign.
4. Final BO done on 6th July'2021.
5. After BO, (must) pullback can be seen.


Overall view for this stock is BULLISH in long-term.