Gujrat Alkalies Bullish ScenarioThe idea here is about Gujarat Alkalies:
Gujarat Alkalies & Chemicals Ltd. engages in the manufacturing and sale of chemical products. Its products include caustic soda group, special chlorine derivatives group, sodium chlorate, caustic potash group, chloromethane group, phosphoric acid, water treatment group, and hydrogen peroxide. The firm's products are used in various industries, such as textile, pulp and paper, soap and detergent, alumina, water treatment, petroleum, plastic, fertilizer, pharmaceutical, agrochemical, plant protection, dyes and intermediate, refrigeration gas, and epoxy.
Important Note: The Caustic Soda Market witnessed a significant growth as its demand stood at 68.76 million tonnes in 2021 and is expected to grow at a CAGR of 4.95% during the forecast period to reach 141.78 million tonnes by 2035 (courtesy of : www.chemanalyst.com)
I am bullish on Gujarat Alkalies due to below observed technical factors.
1. Anti Gartley Pattern Completed on a daily chart as per below:
2. Ascending Triangle on a weekly chart at the time of publishing as per below:
3. Guessing for a possible Sea Pony Pattern on weekly chart & CD price is colliding with Anti Gartley E Swing Price which is also one of the reasons for bullish momentum as per below:
4. Trading above 200 EMA & Support established on 20 EMA on a weekly chart as per below:
5. Ichimoku Cloud analysis: Senkou Span A possible support and bounce off on a daily chart as per below:
6. Ichimoku Cloud analysis: Kumo Break out and kumo twist strong buy for upward momentum on daily chart & Weekly chart.
7. RSI is at 39.40 on a Daily Chart & 52.81 on a weekly chart at the time of publishing.
8. MACD Way above signal line on weekly chart & way below on daily chart.
9. Hull Moving average on daily chart is sell & buy on Weekly chart & other moving average is a strong Weekly & monthly chart. This is a very strong signal for upward momentum.
10. Wait for entry point. However, keep in mind about the current market condition. Since the equity is listed on CNXMIDCAP 200 and BSE 500 one can compare it with the movement of the index mentioned for price momentum.
Projected targets as per Anti Gartley & Possible Sea Pony Harmonic patterns provided in the chart.
Stop Loss: provided in chart.
Disclaimer: “The above is an Educational idea only and not any kind of financial or investment advice. So please do your own DD (Due Diligence) before any kind of investment”.
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