CMP (NSE) 15:59, 16 Sep
Last updated on
05 Sep, 2017
Pidilite Industries Ltd has been stuck in a narrow trading range for the past 10 weeks. This consolidation phase saw the stock gyrating in a 55 point trading range. After taking a pause from June to August, 2017, Pidilite has finally seen a price outburst on the weekly charts indicating a "Flag Pattern" breakout. This suggests the stock is all set to resume its northbound journey.
The 21-WMA has acted as an important support zone for the stock. Our weekly charts analysis indicates that since January 2017, the stock has maintained well above the pivotal weekly moving average which makes it a strong support zone for the stock.
In addition, the price outburst has been accompanied with a smart increase in traded volumes and Pidilite has also managed to sustain above the breakout zone for two consecutive weeks which further accentuates our bullish stance on the stock.
If the breakout plays out the way it should then projection of the structure indicates that Pidilite has a potential first target of ` 972 and second target of ` 997 translating into 19.2% upside. The breakout will stand void if ` 756 is broken on weekly closing basis.