[Premium] Trade Of The Week

This week's focus is on a stock that we've been watching since mid-August when it hit our initial price objective near 11,000 and began correcting.

That stock is Bharat Rasayan Ltd.

Click on chart to enlarge view.

Despite a nearly 30% correction since August, this name still has all of the characteristics we look for in a stock we want to own.

1. It's above a rising 200-day moving average, signaling that it's long-term trend is to the upside.
2. Momentum is in a bullish regime, signaling that buyers have remained in control throughout the correction.
3. The stock is in a strong relative uptrend versus the broader market and its industry group.
4. Our risk is well-defined and reward/risk is skewed in our favor.

Additionally, we've seen other leaders in the space like PI Industries and Coromandel International catching a bid in the last few weeks.

When you combine all of the factors above, the conclusion is clear.

If prices are above their recent lows of 8,450, we want to be long Bharat Rasayan Ltd., with an initial target of 11,035 over the next 1-3 months.

If/when the stock reaches that upside objective, we'll revisit it and look for further upside towards our longer-term objective near 15,740 where we think it ultimately heads based on its multi-year base breakout in July.

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team