Punjab Chemicals, after almost two years, is seen breaking the downwards sloping parallel channel pattern on the weekly timeframe with a bullish candlestick, indicating strength in the stock. Also it is above average volume. The stock is trading above all its important EMAs on the daily timeframe. The Supertrend indicator is also indicating continuation of the uptrend, which supports the bullish view. The Momentum Oscillator RSI (14) is at around 64 on the daily timeframe. Its being above 50 indicates strength. Apart from this, Ichimoku cloud is also giving bullish signal as the price is trading above the conversion line, base line and cloud. On the basis of all these factors, it can be said that an upside movement is possible in Punjab Chemicals to the target of Rs 1,400. On daily closing basis, a buy trade can be initiated between Rs 1,210-1,217 with a stop-loss of Rs 1,100.
