This specialty chemical stock has given a price volume breakout The share price of Privi Specialty Chemicals rose by more than 7 per cent on Thursday with a spike in volume. The volume spurt of more than 2.5 times was seen on NSE and BSE in shares of Privi Specialty Chemicals.
Privi Speciality Chemicals Limited is India’s leading manufacturer, supplier, and exporter of aroma and fragrance chemicals and a globally trusted partner and supplier of bulk aroma chemicals.
The company has delivered good profit growth of 55.42 per cent CAGR over last 5 years while the company's median sales growth is 22.21 per cent for the last 10 years.
The breakout of the triangle pattern and 78.60% Fibonacci retracement level has been done.
What can a swing trader do now ?
There are four ways in which one can trade this stock.
They are as follows :
1) Take a trade right away on Monday opening.With 8% stop loss and with first target of 8% and then for the target of 16%.The risk that you will carry here is 8% which is slightly higher.
2) Take a trade on retest of the breakout trend line ' if it retests ' or leave the stock without trading if it gives another big move again.
3) As it has already registered a big mover candle of 7.5% you can wait for a consolidation at same levels for few trading sessions and take a trade on the breakout of the smaller time frames like the 15 minutes.Here your chances of loosing will be low and thus even your risk would be low.
4) Add only 30-40% of the quantity out of the 100% quantity that you would trade on Monday with stop loss of 8% and add remaining quantities ' if and only ' it consolidates and gives a breakout on the smaller time frames.
The first profit booking area will be at the levels of 1935-1955 and then you can wait for the creation of new highs as it has been doing the same in the past.But the stock might find resistance at the levels of 1990-2015 as it is a psychological profit booking area.
This post is only for educational purpose and not a call.Trade the stock only if it falls as per your risk-reward setup.
