1. Chemical sector in focus from long now
2. ATUL has been proved a consistent compounder
3. The pullback has taken support near 21EMA
4. Very tight consolidation range
Note:- This pattern can go any side (up or down) but looking at the candle formation and 21EMA support I can take some risk and go LONG.
Technical Trade - Atul has been consolidating above 50DMA. Price is around the 61.8 retracement level. Down days are on extremely low volume and up days are on higher volume. Price is contracting. I will be buying above 4745. This stock has great fundamentals.
Atul ltd has currently taken support at 4500 but seems it will break this and reach 4250 or 4000 before continuing the larger up-trend.
Would wait to see the consolidation play out before initiating any fresh buy positions.