Ashish Chaturmohta
Sanctum Wealth Management
Phillips Carbon Black has been in a long-term uptrend as it was forming higher tops and higher bottoms on the weekly and monthly chart. It hit an all-time high of Rs 319 in January this year and then saw major correction towards Rs 188 levels.
Since then the stock has seen consolidation between Rs 275 and Rs 188 levels to form a double bottom pattern on the weekly chart.
In the last couple of weeks, the stock has rallied with a bullish long candlestick formation and high volumes which indicates buying participation from lower levels.
The price has given a breakout above the neckline in Thursday’s session. Weekly MACD has given a positive crossover with its average after turning up from equilibrium level confirming the breakout on the upside.
Thus, the stock can be bought at current level and on dips towards Rs 275 with a stop loss below Rs 265 and a target of Rs 320 levels.
Disclaimer: The author is Head of Technical and Derivatives at Sanctum Wealth Management. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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