🔍 Summary:
Chemplast Sanmar has been in a prolonged downtrend after peaking near ₹750. Price recently respected key Fibonacci retracement zones and horizontal support near ₹420. Currently, it is attempting to break a falling trendline, with RSI also showing early signs of strength.
🔍 Technical Breakdown:
Trend: Downtrend since July 2023 with consistent lower highs.
Support Zone: ₹420–₹410 (well tested multiple times)
Resistance Zone: ₹450–₹460 (confluence of horizontal and falling trendline)
Fibonacci Levels: Key retracement at 0.786 (~₹420) has held.
Fibonacci Extension: 1.618 level projects target near ₹843 (only on strong reversal).
RSI (14): Currently at 47.38, slightly below 50 but showing a breakout above the RSI trendline.
Volume: Moderate, but increasing near support – a sign of accumulation.
⚠️ Observations & Mistakes to Avoid:
RSI divergence and breakout from RSI downtrend line is bullish, but confirmation on price is still pending.
Volume hasn't spiked significantly yet – wait for volume confirmation before large position.
The downtrend line is still intact on price – do not pre-emptively assume breakout.
✅ Suggestions:
Breakout Watch: A weekly close above ₹455–₹460 with volume will confirm breakout from the falling wedge pattern.
Risk Management: Stop loss for long positions below ₹410 on weekly closing basis.
Upside Targets (Post Breakout):
₹490 (Initial target)
₹530 (Fibonacci resistance)
₹590+ (Medium-term)
Avoid Fresh Shorts unless price breaks and closes below ₹410.
📌 Conclusion:
Chemplast Sanmar is at a decisive juncture. A breakout from the falling trendline with volume could initiate a trend reversal. RSI is improving, and horizontal support has held well. Keep it on radar for potential breakout entry
Chemplast Sanmar has been in a prolonged downtrend after peaking near ₹750. Price recently respected key Fibonacci retracement zones and horizontal support near ₹420. Currently, it is attempting to break a falling trendline, with RSI also showing early signs of strength.
🔍 Technical Breakdown:
Trend: Downtrend since July 2023 with consistent lower highs.
Support Zone: ₹420–₹410 (well tested multiple times)
Resistance Zone: ₹450–₹460 (confluence of horizontal and falling trendline)
Fibonacci Levels: Key retracement at 0.786 (~₹420) has held.
Fibonacci Extension: 1.618 level projects target near ₹843 (only on strong reversal).
RSI (14): Currently at 47.38, slightly below 50 but showing a breakout above the RSI trendline.
Volume: Moderate, but increasing near support – a sign of accumulation.
⚠️ Observations & Mistakes to Avoid:
RSI divergence and breakout from RSI downtrend line is bullish, but confirmation on price is still pending.
Volume hasn't spiked significantly yet – wait for volume confirmation before large position.
The downtrend line is still intact on price – do not pre-emptively assume breakout.
✅ Suggestions:
Breakout Watch: A weekly close above ₹455–₹460 with volume will confirm breakout from the falling wedge pattern.
Risk Management: Stop loss for long positions below ₹410 on weekly closing basis.
Upside Targets (Post Breakout):
₹490 (Initial target)
₹530 (Fibonacci resistance)
₹590+ (Medium-term)
Avoid Fresh Shorts unless price breaks and closes below ₹410.
📌 Conclusion:
Chemplast Sanmar is at a decisive juncture. A breakout from the falling trendline with volume could initiate a trend reversal. RSI is improving, and horizontal support has held well. Keep it on radar for potential breakout entry
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.