Targets : 675-700 Buy range : 620-630 Stoploss : 580 Duration : 4-5 weeks
Outlook :
The strong up move in the share price of Tatachem from June 2017 bottom of Rs.585 saw the stock registered a resolute breakout with volumes above the falling trendline joining the previous highs since May 2017 thereby signalling a reversal of the corrective trend and offers a fresh entry opportunity to ride the next up move in the stock.
The stock has recently rebounded taking support near previous bottom area of Rs.580 and retraced to the midpoint levels of Rs.648.
Current price action scenario is also nearing the completion of a Bullish Reversal “Double Bottom” pattern, however a break and a close above Rs.648-650 will confirm the above said pattern.
In the current up move the stock has already retraced 78.6% of its 9 weeks decline from Rs.666.50 to Rs.648 in just 5 to 6 sessions indicating a positive price structure.
Among oscillators, the daily 14 period’s RSI is
currently placed above 60 levels, which may exceed prices further upwards. MACD has already a given a positive crossover above signal line.
We expect the stock to continue with its current uptrend and head towards its previous tops in the coming weeks, hence recommend a Buy above Rs.648 or at any dips (price range 620-630), stoploss is placed just below Rs.580 for a minimum projected pattern targets of Rs.700.
Outlook :
The strong up move in the share price of Tatachem from June 2017 bottom of Rs.585 saw the stock registered a resolute breakout with volumes above the falling trendline joining the previous highs since May 2017 thereby signalling a reversal of the corrective trend and offers a fresh entry opportunity to ride the next up move in the stock.
The stock has recently rebounded taking support near previous bottom area of Rs.580 and retraced to the midpoint levels of Rs.648.
Current price action scenario is also nearing the completion of a Bullish Reversal “Double Bottom” pattern, however a break and a close above Rs.648-650 will confirm the above said pattern.
In the current up move the stock has already retraced 78.6% of its 9 weeks decline from Rs.666.50 to Rs.648 in just 5 to 6 sessions indicating a positive price structure.
Among oscillators, the daily 14 period’s RSI is
currently placed above 60 levels, which may exceed prices further upwards. MACD has already a given a positive crossover above signal line.
We expect the stock to continue with its current uptrend and head towards its previous tops in the coming weeks, hence recommend a Buy above Rs.648 or at any dips (price range 620-630), stoploss is placed just below Rs.580 for a minimum projected pattern targets of Rs.700.
Trade closed: stop reached