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.
Aarti Drugs has broken his previous 5-6 years of rang bound movement and finally, the up-trend seems to be resumed.
It would be wise to wait for some pullback and then enter. I would be watchful at 875-880 levels to enter. (Refer daily chart, this level acts as a previous top)
Stock is volatile so stop loss can be kept on a closing basis or some additional risk...
Asian Paints - Trending in a channel from 2015 Jan
This time also, it has taken support at the lower trendline of the channel
The lower trend-line coincides with 100WEMA (Weekly EMA)
Good compounders should be always analyzed on the weekly charts such points are low-risk entries
Disc:- Invested at 1600 levels
Stock making 52-week/ATH and then it is bound to correct and take support near 20EMA/SMA or worst case at 50EMA/SMA.
The candlesticks are showing the loss in volatility and stock is taking the support. Once the bullish candlestick pattern is observed near the support one can take the position with a stop below 20EMA or previous swing low.
There is a momentum with railway stocks, IRCTC bumper listing plus RITES giving huge returns. The stock is now retesting with lower volumes and looking at the candles near the retest zone, one can safely assume that either the consolidation is going to happen or uptrend will continue.
One can keep a stop of anything below 255-256