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Investors with a short-term perspective can buy the stock of Chambal Fertilisers & Chemicals at current levels. The stock gained 4.4 per cent accompanied by above average volume on Thursday, breaking above a significant long-term resistance level of ₹135.
Since it took support at ₹95 in late March this year, the stock has been in a short-term uptrend. While trending up, the stock had decisively breached a key resistance at ₹110 in early April. But it had encountered a vital resistance at ₹135 in mid-April and moved sideways until recently. The decisive breakthrough of resistance at ₹135 has strengthened the short-term uptrend. Also, the stock hovers well above its 21- and 50-DMAs.
There has been an increase in daily volume over the past two trading sessions. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Besides, the daily price rate of change indicator has entered the neutral region from the negative territory implying buying interest.
The short-term outlook for the stock is bullish. It can continue to trend upwards and reach the price targets of ₹149 and ₹152 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹139.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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