Mentum Stocks: Positional Technical Pick
Mentum Stocks: Positional Technical Pick
Mentum Stocks: Positional Technical Pick
Retail Research
Stock
Phillips Carbon Black
CMP
133
Recommended Action**
Buy between 126 & 133
mentum stocks
Targets
150/163
Stop Loss*
118
Time Horizon
1-3 Weeks
* Stoploss as per daily closing basis. **= Recommended to stagger buying rather than entering entirely at CMP
Current Observation:
Philip Carbon Black has been consolidating in a narrow range between the 110 and 122 levels for the last several weeks. On Tuesday (13th
OCT 2015), the stock broke out of this range on the back of above average volumes. After taking a breather on Wednesday, the stock has
resumed its upmove today by moving above the recent highs of 131.9, which is encouraging.
Technical indicators are currently giving positive signals as the stock trades above the short term (13 day SMA) and medium term (50 day
SMA) moving averages. Momentum indicators like the 14-day RSI too are in rising mode and not yet overbought. The 14-day RSI is also
above its 9-day EMA, which is a positive signal for the stock.
The Relative Strength Comparative indicator is beginning to rise, which implies that the stock is currently outperforming the Nifty index,
and is therefore likely to rise more than the index in the near term.
The stock is also looking attractive on the weekly chart as it has risen recently from major supports.
Given the positive technical set up, we believe the stock is on the verge of resuming the next leg of its underlying uptrend. Our entry
levels and targets have been mentioned above. Our first target is just below the previous intermediate highs of 155.
RETAIL RESEARCH
RETAIL RESEARCH