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The bias is turning bearish on the charts of Phillips Carbon Black. The stock has been falling consecutively over the last four weeks. It is down 17 per cent over this period.
This fall has broken the uptrend that has been in place since late March last year. The stock has also made a decisive break and close below the 21-week moving average which is currently at ₹242. In addition to this, there is a double-top reversal pattern visible on the chart. All these could keep the stock under pressure.
A break below the immediate support level of ₹217 will confirm the double-top pattern. Such a break will pave way for a fresh fall initially to ₹192 – the 38.2 per cent Fibonacci retracement level and eventually to ₹166 – the 50 per cent Fibonacci retracement support.
Investors can sell 50 per cent of their holdings at current levels. The balance 50 per cent can either be sold on break below ₹217 or at ₹235 if a corrective bounce is seen.
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