Technical Analysis

Phillips Carbon Black (₹122.8): Buy

Yoganand D | Updated on January 02, 2020 Published on January 02, 2020

The stock of Phillips Carbon Black has been in highlight this week and has gained 8.4 per cent accompanied by good volume so far in this week. This rally provides short-term perspective investors an opportunity to buy the stock at current levels.

After an intermediate-term downtrend, the stock took support at around ₹110 in June 2019. Since then, the stock has been in a sideways consolidation phase between ₹110 and ₹135. The lower boundary at ₹110 acts as a significant long-term base for the stock.

In early December 2019, the stock took support from the lower boundary and began to trend upwards. On Wednesday, the stock jumped 3.7 per cent with above average volume breaking above its immediate resistance as well as the 50-DMA at ₹120. Also, the stock hovers well above its 21- and 50-DMAs.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Moreover, both the daily and weekly price rate of change indicator hover in the positive terrain implying buying interest.

The short-term outlook is bullish. The stock can continue to trend upwards in the ensuing trading sessions. Targets are ₹128 and ₹130.5. Traders can buy the stock with a stop-loss at ₹120.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on January 02, 2020
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