Chemical Reaction Getting Stronger

April 19, 2021

We've spoken about how Chemicals have been performing well for over two weeks. In a post we published in March-end, we highlighted some actionable ideas that were looking good from a risk-reward perspective.

Turns out, this segment has been continuing to display strength and we're seeing some more stocks joining the bullish reaction in this space.

You can access our earlier post here and check out all the ideas we've been tracking.

Let's take a look at Navin Fluorine. The price has moved past its resistance at 2,700 and is headed towards its next target of 4,010. With the indicator placed in bullish momentum and the sector performing well as a whole, we can expect a good move in this particular stock going forward. A strong name in this sector, Navin fluorine has broken out after a consolidation of almost five months.

We are bullish above the level of 2,700 with a target near 4,010

Click on chart to enlarge view.

Next we have Vinati Organics that has been a favourite among the trading community. The price has broken out above a crucial level of resistance and looks like it's gearing up for the next leg of the rally. The indicator too has moved into bullish momentum and is alluding to the strength in this move.

We are bullish above the risk management level of 1,533 with a target near 2,078.

We have a couple of stocks on our radar which we'd like to track closely. One of them is Gujarat Fluorochem Ltd, which has revisited its all-time highs and seems to be challenging this resistance. The indicator is in a strong zone and we may see the price break out above its resistance if the current move in chemicals persists.

We are bullish only above the level of 750 with a target near 1,080. Until then, we're happy to wait!

Gujarat Alkalies is another name that's on the radar. The price broke out of a year-long consolidation and achieved its immediate target ar 468. Going forward, only a move above 468 would warrant a fresh position in this particular stock.

We are bullish only above the level of 468 with a target near 646.