Technical Analysis

Thirumalai Chemicals (₹107.6): Buy

Yoganand D BL Research Bureau | Updated on March 04, 2021

Investors with a short-term horizon can buy the stock of Thirumalai Chemicals at current levels. The stock surged 6.3 per cent accompanied by extraordinary volume on Thursday, breaking above a key long-term resistance at ₹100 which was also psychological resistance levels.

Since the stock recorded a 52-week low at ₹31.5 in March 2020, it has been in an intermediate to long-term uptrend, forming higher highs and higher lows. In November 2020, the stock breached a key resistance at ₹80 and continued to trend upwards.

However, the stock had met with a resistance at ₹118 in early December and witnessed a near-term corrective fall. Key support at ₹90 had provided base for the stock in January this year and the stock gradually continued to trend upwards.

The recent breakthrough has strengthened the stock's uptrend. Both the daily and the weekly relative strength indices have entered the bullish zone from the neutral region.

The short-term outlook is bullish for the stock. Targets are ₹112 and ₹114. Traders can buy with a stop-loss at ₹105 levels.

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

Published on March 05, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor